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December 24, 2014
MR. PAUL JANES-BROWN
MAUI GAIN
Dear Mr. Janes-Paul,
Maui GAIN is focused on reforming the structure of county government
from a Mayor – County Council to a City Manager – County Council. My
thoughts have been shared with you. A challenge is issued to you and your
members to take on a significant and monumental change for the entire State of
Hawaii and the people of Hawaii.
Maui GAIN by taking the lead can serve the greater good for the entire
State of Hawaii by Petitioning Governor David Ige to investigate the sale of
Hawaiian Electric Industries (HEI) and its subsidiary, Hawaiian Electric
Company (HECO), and HECO’s subsidiaries Maui Electric Company, Ltd.
(MECO) and Hawaii Electric Lighting Company (HELCO), to NextEra Energy,
particularly and specifically, the operating business model of HEI, its utility
business line and its financial unit, American Savings Bank (ASB) (to be spun off
as a separate business line in the sale to NextEra Energy).
The announced sale by HEI of the utilities to NextEra Energy, pending
approval by the Hawaii Public Utilities Commission (HPUC) provides a window
for the timely and immediate activism and the collective participation of
consumers of electric service provided by HECO, MECO and HELCO.
Hawaii is the most fossil fuel dependent state in the Nation, nearly 95% of
the state's energy is from imported crude oil, Hawai'i pays the highest electricity
prices in the Nation.
“Hawaii's current electric utility model evolved
pursuant to what is known as the traditional
regulatory compact. Under this arrangement electric
utilities are granted a franchise by the Legislature and
are provided the opportunity to earn a reasonable
return on capital in exchange for an obligation to
commit the necessary capital to serve all comers …
[T]he traditional regulatory compact does not
encapsulate the range of relationships that today’s
electric system incorporates. In light of the changing
landscape and complexity of the modern electric
system, the Commission believes that a review of the
fundamental electric utility-customer relationship is
warranted.” [Emphasis Supplied]
Source: HPUC Chair Hermina Morita on H.B. 1999,
January 30, 2014
The men and women of Hawaiian Electric, Maui Electric and Hawaii
Lighting Company serve with professionalism, dedication and provide the best
in customer service.
The business model for HEI has long been accepted. The HPUC has not
been provided the authority and independence to do its job. The HPUC has been
hamstrung the Hawaii Legislature and the Executives who have cursory
knowledge and experience in regulating a utility.
The challenge is to change the landscape of government by petitioning
Governor Ige and the State Legislators:
1. To place fully the regulation of Hawaii’s utilities in
the hands of trained professionals, the Hawaii Public
Utilities Commission, the Commissioners and the staff of the
Hawaii Public Utilities Commission;
2. To have the Hawaii Public Utilities Commission, after
complete and through investigation of HEI and its business
units, now prompted by the HEI – NextEra Energy sale, to
examine the current business model for HEI to infuse and
increase efficiency, reduce costs and improve administrative
decision-making consistent with best management practices,
laws, rules, regulations and accounting practices;
3. To remove and take politics out of the operations of
the Hawaii Public Utilities Commission;
4. To remove political favoritism in all forms, in favor of
good government; and,
5. To fully resource the Hawaii Public Utilities
Commission so the Commission can effectively and
efficiently carry forward its statutory responsibilities and
mission as provided by the laws of the State of Hawaii.
Hawaiian Electric, Maui Electric and Hawaii Electric Lighting Company
have served and continue to serve and provide the best service to the consumers.
The management and structure for rate making are outmoded
The time is now to change for the better and the benefit for the entire State
of Hawaii.
Maui is the leader and in the forefront of change. Your leadership and
collaboration with everyone in the State of Hawaii is your challenge.
To disband HEI and create Oahu Island Utility Cooperative, Maui Island
Cooperative and Hawaii Island Cooperative, like Kauai Island Utility
Cooperative (KIUC), a not-for-profit generation, transmission and distribution
cooperative owned and controlled by the members it serves, is the alternative.
Maui No Ka Oi, Maui is the Best.
Go forth and be the voice for the People of the State of Hawaii.

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MAUI --- Maui Gain -- Changing the Landscape of Government -- IMUA - Moving Ahead Together

  • 1. December 24, 2014 MR. PAUL JANES-BROWN MAUI GAIN Dear Mr. Janes-Paul, Maui GAIN is focused on reforming the structure of county government from a Mayor – County Council to a City Manager – County Council. My thoughts have been shared with you. A challenge is issued to you and your members to take on a significant and monumental change for the entire State of Hawaii and the people of Hawaii. Maui GAIN by taking the lead can serve the greater good for the entire State of Hawaii by Petitioning Governor David Ige to investigate the sale of Hawaiian Electric Industries (HEI) and its subsidiary, Hawaiian Electric Company (HECO), and HECO’s subsidiaries Maui Electric Company, Ltd. (MECO) and Hawaii Electric Lighting Company (HELCO), to NextEra Energy, particularly and specifically, the operating business model of HEI, its utility business line and its financial unit, American Savings Bank (ASB) (to be spun off as a separate business line in the sale to NextEra Energy). The announced sale by HEI of the utilities to NextEra Energy, pending approval by the Hawaii Public Utilities Commission (HPUC) provides a window for the timely and immediate activism and the collective participation of consumers of electric service provided by HECO, MECO and HELCO. Hawaii is the most fossil fuel dependent state in the Nation, nearly 95% of the state's energy is from imported crude oil, Hawai'i pays the highest electricity prices in the Nation. “Hawaii's current electric utility model evolved pursuant to what is known as the traditional regulatory compact. Under this arrangement electric utilities are granted a franchise by the Legislature and are provided the opportunity to earn a reasonable return on capital in exchange for an obligation to commit the necessary capital to serve all comers …
  • 2. [T]he traditional regulatory compact does not encapsulate the range of relationships that today’s electric system incorporates. In light of the changing landscape and complexity of the modern electric system, the Commission believes that a review of the fundamental electric utility-customer relationship is warranted.” [Emphasis Supplied] Source: HPUC Chair Hermina Morita on H.B. 1999, January 30, 2014 The men and women of Hawaiian Electric, Maui Electric and Hawaii Lighting Company serve with professionalism, dedication and provide the best in customer service. The business model for HEI has long been accepted. The HPUC has not been provided the authority and independence to do its job. The HPUC has been hamstrung the Hawaii Legislature and the Executives who have cursory knowledge and experience in regulating a utility. The challenge is to change the landscape of government by petitioning Governor Ige and the State Legislators: 1. To place fully the regulation of Hawaii’s utilities in the hands of trained professionals, the Hawaii Public Utilities Commission, the Commissioners and the staff of the Hawaii Public Utilities Commission; 2. To have the Hawaii Public Utilities Commission, after complete and through investigation of HEI and its business units, now prompted by the HEI – NextEra Energy sale, to examine the current business model for HEI to infuse and increase efficiency, reduce costs and improve administrative decision-making consistent with best management practices, laws, rules, regulations and accounting practices; 3. To remove and take politics out of the operations of the Hawaii Public Utilities Commission;
  • 3. 4. To remove political favoritism in all forms, in favor of good government; and, 5. To fully resource the Hawaii Public Utilities Commission so the Commission can effectively and efficiently carry forward its statutory responsibilities and mission as provided by the laws of the State of Hawaii. Hawaiian Electric, Maui Electric and Hawaii Electric Lighting Company have served and continue to serve and provide the best service to the consumers. The management and structure for rate making are outmoded The time is now to change for the better and the benefit for the entire State of Hawaii. Maui is the leader and in the forefront of change. Your leadership and collaboration with everyone in the State of Hawaii is your challenge. To disband HEI and create Oahu Island Utility Cooperative, Maui Island Cooperative and Hawaii Island Cooperative, like Kauai Island Utility Cooperative (KIUC), a not-for-profit generation, transmission and distribution cooperative owned and controlled by the members it serves, is the alternative. Maui No Ka Oi, Maui is the Best. Go forth and be the voice for the People of the State of Hawaii.