Honolulu Authority for Rapid Transit - The Hawaii State Legislature - City and County of Honolulu - The Hawaii Public Utilities Commission --- A Formula for Moving Onward and Forward
"An organization's ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage"
---Jack Welch, Business Executive, Author, Chemical Engineer, Former Chairman and CEO, General Electric
House Bill (H.B.) 1999 HD1, now before the Hawaii Legislature, is one of the most important pieces of legislation to be considered for enactment into law.
H.B. 1999 HD1 establishes the Legislative Utility Oversight Task Force to review franchises held by investor-owned electric utilities, specifically, Hawaiian Electric Company (HECO) and its subsidiary utilities, Maui Electric Company (MECO) and Hawaii Electric Light Company (HELCO)
.
HECO OPPOSES H.B. 1999 HD1.
HECO is a state-granted monopoly. Denial or Opposition to the review of its processes is not a right or privilege to be invoked by HECO. HECO has been granted the right to be the sole provider of electric power to the people of Hawaii. The self-serving testimony of HECO is subject to review, so are its processes, and its links to its parent, Hawaiian Electric Industries (HEI) and its sister, American Savings Bank (ASB).
The testimony of the Consumer Advocate and The Blue Planet are instructive and illustrative.
TESTIMONY OF HAWAIIAN ELECTRIC COMPANY (HECO)
The Hawaiian Electric Company and its subsidiary utilities, Maui Electric Company and Hawaii Electric Light Company, OPPOSES H.B. 1999, H.D. 1.
TESTIMONY OF THE CONSUMER ADVOCATE
“The Consumer Advocate APPRECIATES the intent of the H.D.1, which is proposing to regularly evaluate investor-owned utility companies to “ensure that these utilities are adequately providing services that serve the public.” All utility companies should be held accountable for their duty to provide safe, reliable, high quality utility services at affordable rates. The Consumer Advocate APPRECIATES the Legislature’s desire to hold the HECO Companies accountable to their franchise by creating this task force, although much of the work of the task force may be duplicative of what the Commission is already doing.” [Emphasis supplied]
TESTIMONY OF BLUE PLANET FOUNDATION
“As the PUC’s May 2013 order said, “attractive financial returns are not a utility entitlement." But developing the right system—the world-class system that other utilities emulate—should provide attractive value not only for the utility and its shareholders, but also for every resident in the state. As the PUC concluded, “the public interest demands no less.” BLUE PLANET FOUNDATION BELIEVES THAT HB 1999 HD1 WILL HELP IDENTIFY HOW BEST TO ENSURE THAT OUR INVESTOR-OWNED UTILITIES PROVIDE THAT VALUE. THIS INSTITUTIONAL EVOLUTION REGARDING HOW TO REGULATE HAWAII'S LARGEST ELECTRIC COMPANY WILL DETERMINE HOW THE ISLANDS ARE POWERED FOR THE NEXT CENTURY.” [Emphasis supplied]
Transparency, accountability, and responsibility require full disclosure and openness to audit, investigation, inquiry, and review by independent, third-parties and agencies.
The House Committee on Consumer Protection and Commerce has scheduled a Decision Making Hearing, Today, February 12, 2014, 2:00 p.m., Hawaii State Capitol, Room 325.
y
“Evil is not something superhuman, it's something less than human.” – Agatha Christie
“The most confused we ever get is when we're trying to convince our heads of something our heart knows is a lie.” ― Karen Marie Moning
Ua mau ke ea o ka `aina i ka pono - The life of the land is preserved in righteousness – Motto of Hawai`i
“The guys said, maybe this problem will go away. It didn't go away. It got worse. Nobody messes with me.”
--- Shirley Muldowney, The First Lady of Drag Racing
“I'm tellingya, we got talent in these Islands.”
--- Roland Leong, The flyn’ Hawaiian, Top Fuel
“Having a venue for racing is good. Good for individuals and families but also good for getting racers off the street. Saving one life is priceless.”
--- Noel C. Akamu, State of Hawai`i, Department of Hawaiian Homelands
House Bill (H.B.) 1999 HD1, now before the Hawaii Legislature, is one of the most important pieces of legislation to be considered for enactment into law.
H.B. 1999 HD1 establishes the Legislative Utility Oversight Task Force to review franchises held by investor-owned electric utilities, specifically, Hawaiian Electric Company (HECO) and its subsidiary utilities, Maui Electric Company (MECO) and Hawaii Electric Light Company (HELCO)
.
HECO OPPOSES H.B. 1999 HD1.
HECO is a state-granted monopoly. Denial or Opposition to the review of its processes is not a right or privilege to be invoked by HECO. HECO has been granted the right to be the sole provider of electric power to the people of Hawaii. The self-serving testimony of HECO is subject to review, so are its processes, and its links to its parent, Hawaiian Electric Industries (HEI) and its sister, American Savings Bank (ASB).
The testimony of the Consumer Advocate and The Blue Planet are instructive and illustrative.
TESTIMONY OF HAWAIIAN ELECTRIC COMPANY (HECO)
The Hawaiian Electric Company and its subsidiary utilities, Maui Electric Company and Hawaii Electric Light Company, OPPOSES H.B. 1999, H.D. 1.
TESTIMONY OF THE CONSUMER ADVOCATE
“The Consumer Advocate APPRECIATES the intent of the H.D.1, which is proposing to regularly evaluate investor-owned utility companies to “ensure that these utilities are adequately providing services that serve the public.” All utility companies should be held accountable for their duty to provide safe, reliable, high quality utility services at affordable rates. The Consumer Advocate APPRECIATES the Legislature’s desire to hold the HECO Companies accountable to their franchise by creating this task force, although much of the work of the task force may be duplicative of what the Commission is already doing.” [Emphasis supplied]
TESTIMONY OF BLUE PLANET FOUNDATION
“As the PUC’s May 2013 order said, “attractive financial returns are not a utility entitlement." But developing the right system—the world-class system that other utilities emulate—should provide attractive value not only for the utility and its shareholders, but also for every resident in the state. As the PUC concluded, “the public interest demands no less.” BLUE PLANET FOUNDATION BELIEVES THAT HB 1999 HD1 WILL HELP IDENTIFY HOW BEST TO ENSURE THAT OUR INVESTOR-OWNED UTILITIES PROVIDE THAT VALUE. THIS INSTITUTIONAL EVOLUTION REGARDING HOW TO REGULATE HAWAII'S LARGEST ELECTRIC COMPANY WILL DETERMINE HOW THE ISLANDS ARE POWERED FOR THE NEXT CENTURY.” [Emphasis supplied]
Transparency, accountability, and responsibility require full disclosure and openness to audit, investigation, inquiry, and review by independent, third-parties and agencies.
The House Committee on Consumer Protection and Commerce has scheduled a Decision Making Hearing, Today, February 12, 2014, 2:00 p.m., Hawaii State Capitol, Room 325.
y
“Evil is not something superhuman, it's something less than human.” – Agatha Christie
“The most confused we ever get is when we're trying to convince our heads of something our heart knows is a lie.” ― Karen Marie Moning
Ua mau ke ea o ka `aina i ka pono - The life of the land is preserved in righteousness – Motto of Hawai`i
“The guys said, maybe this problem will go away. It didn't go away. It got worse. Nobody messes with me.”
--- Shirley Muldowney, The First Lady of Drag Racing
“I'm tellingya, we got talent in these Islands.”
--- Roland Leong, The flyn’ Hawaiian, Top Fuel
“Having a venue for racing is good. Good for individuals and families but also good for getting racers off the street. Saving one life is priceless.”
--- Noel C. Akamu, State of Hawai`i, Department of Hawaiian Homelands
“The most confused we ever get is when we're trying to convince our heads of something our heart knows is a lie.”
― Karen Marie Moning
“The true value of somebody in this town is very hard to determine. It’s all smoke and mirrors.”
– Mark Ruffalo
The future belongs to those who see possibilities before they become obvious. - John Scully
The visionary is the one who brings his or her voice into the world and who refuses to edit, rehearse, perform, or hide. It is the visionary who knows that the power of creativity is aligned with authenticity. - Angeles Arrien
RONALD REAGAN ON BIG GOVERNMENT
“Government is not the solution to our problems, government is the problem.”
“Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if stops moving, subsidize it.”
“The nine most terrifying words in the English language are, “I’m from the government and I’m here to help.”
- From the Reagan Ranch Center, Santa Barbara, California, USA
“Perfect partners don't exist. Perfect conditions exist for a limited time which partnerships express themselves best”
~ Wayne Rooney
“The best partnerships aren”t dependent on a mere common goal but on a shared path of equality, desire, and no small amount of passion” ~ Sarah MacLean
“Focus on how far you have come, not how far you have to go.” - C.S. Lewis
“There are many challenges, there are many obstacles; let us try to change the obstacles to advantages.” - Harri Holkeri
“A year from now you will wish you had started today.”
- Karen Lamb
“In Hawaii, we have something called Ho'oponopono, where people come together to resolve crisis and restore peace and balance”.
~ Duane Chapman
“Hawaii is not a state of mind, but a state of grace”.
~ Paul Theroux
Thank you is the very least that we can say to you to show our absolute appreciation for everything you've done for us to make our lives better. Thank you for being there to guide us, lead us and keep us moving forward!
Most of the important things in the world have been accomplished by people who have kept on trying when there seemed to be no hope at all. ~ Dale Carnegie
We thank you for yesterday and we thank you for today. But most of all we thank you for the days to come!
Leading change means bringing people with you to a better state than any of you could have envisaged alone.
~ A.J. Sheppard
An organization’s ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage.
~ Jack Welch
Changes are inevitable and not always controllable. What can be controlled is how you manage, react to and work through the change process.
~ Kelly A. Morgan
--- It is fascinating to watch legislators turn away from their usual corporate grips when they hear the growing thunder of the people.
--- When strangers start acting like neighbors... communities are reinvigorated.
Ralph Nader - Consumer Advocate, Lawyer, and Author
---- UNSAFE AT ANY SPEED ----
"You miss 100 percent of the shots you don't take."
- Wayne Gretzky, NHL Hall of Fame, “The Great One”
“If you can't fly then run, if you can't run then walk, if you can't walk then crawl, but whatever you do you have to keep moving forward.”
- Dr. Martin Luther King, Jr.
Good governance demands elected public official be honest and transparent. Elected public officials represent the people and to provide for the people.
We have been patient and tolerant. We have been tested.
We are Idle No More!
Leading By Example
The challenge of leadership is to be strong, but not rude; be kind, but not weak; be bold, but not bully; be thoughtful, but not lazy; be humble, but not timid; be proud, but not arrogant; have humor, but without folly. - Jim Rohn
“If you want to change the culture, you will have to start by changing the organization.” – Mary Douglas
“Be true to the game, because the game will be true to you. If you try to shortcut the game, then the game will shortcut you. If you put forth the effort, good things will be bestowed upon you. That’s truly about the game, and in some ways that’s about life too.”
– Michael Jordan
“I have my faults, but changing my tune is not one of them.”
– Samuel Beckett
Excuses kill solutions and dilute passion. Kill excuses before it kills you. Focus is key! Obstacles will always exist on your path, but it's important to remember that it is not these challenges that stop us from becoming the amazing people we can be, it is often our own excuses that stop us. - Vijay Eswaran
Audit success comes from service, not from status. The true standards of audit practice are found within the auditor's character: honesty, integrity, self control and high ethical values. The printed standards are merely guidelines for trying to make the art of auditing into a profession. - Michael L. Piazza
Auditors must develop a reputation that proclaims that they know what they are doing... that their reviews are factual and unbiased... that they deserve to be respected... that they are professionals with professional qualifications. A fundamental key to audit success is the reputation for objectivity. That implies independence from activities reviewed. Complete independence is an unattainable goal while practical independence is not only possible but absolutely essential. - Larry Sawyer
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“The most confused we ever get is when we're trying to convince our heads of something our heart knows is a lie.”
― Karen Marie Moning
“The true value of somebody in this town is very hard to determine. It’s all smoke and mirrors.”
– Mark Ruffalo
The future belongs to those who see possibilities before they become obvious. - John Scully
The visionary is the one who brings his or her voice into the world and who refuses to edit, rehearse, perform, or hide. It is the visionary who knows that the power of creativity is aligned with authenticity. - Angeles Arrien
RONALD REAGAN ON BIG GOVERNMENT
“Government is not the solution to our problems, government is the problem.”
“Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if stops moving, subsidize it.”
“The nine most terrifying words in the English language are, “I’m from the government and I’m here to help.”
- From the Reagan Ranch Center, Santa Barbara, California, USA
“Perfect partners don't exist. Perfect conditions exist for a limited time which partnerships express themselves best”
~ Wayne Rooney
“The best partnerships aren”t dependent on a mere common goal but on a shared path of equality, desire, and no small amount of passion” ~ Sarah MacLean
“Focus on how far you have come, not how far you have to go.” - C.S. Lewis
“There are many challenges, there are many obstacles; let us try to change the obstacles to advantages.” - Harri Holkeri
“A year from now you will wish you had started today.”
- Karen Lamb
“In Hawaii, we have something called Ho'oponopono, where people come together to resolve crisis and restore peace and balance”.
~ Duane Chapman
“Hawaii is not a state of mind, but a state of grace”.
~ Paul Theroux
Thank you is the very least that we can say to you to show our absolute appreciation for everything you've done for us to make our lives better. Thank you for being there to guide us, lead us and keep us moving forward!
Most of the important things in the world have been accomplished by people who have kept on trying when there seemed to be no hope at all. ~ Dale Carnegie
We thank you for yesterday and we thank you for today. But most of all we thank you for the days to come!
Leading change means bringing people with you to a better state than any of you could have envisaged alone.
~ A.J. Sheppard
An organization’s ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage.
~ Jack Welch
Changes are inevitable and not always controllable. What can be controlled is how you manage, react to and work through the change process.
~ Kelly A. Morgan
--- It is fascinating to watch legislators turn away from their usual corporate grips when they hear the growing thunder of the people.
--- When strangers start acting like neighbors... communities are reinvigorated.
Ralph Nader - Consumer Advocate, Lawyer, and Author
---- UNSAFE AT ANY SPEED ----
"You miss 100 percent of the shots you don't take."
- Wayne Gretzky, NHL Hall of Fame, “The Great One”
“If you can't fly then run, if you can't run then walk, if you can't walk then crawl, but whatever you do you have to keep moving forward.”
- Dr. Martin Luther King, Jr.
Good governance demands elected public official be honest and transparent. Elected public officials represent the people and to provide for the people.
We have been patient and tolerant. We have been tested.
We are Idle No More!
Leading By Example
The challenge of leadership is to be strong, but not rude; be kind, but not weak; be bold, but not bully; be thoughtful, but not lazy; be humble, but not timid; be proud, but not arrogant; have humor, but without folly. - Jim Rohn
“If you want to change the culture, you will have to start by changing the organization.” – Mary Douglas
“Be true to the game, because the game will be true to you. If you try to shortcut the game, then the game will shortcut you. If you put forth the effort, good things will be bestowed upon you. That’s truly about the game, and in some ways that’s about life too.”
– Michael Jordan
“I have my faults, but changing my tune is not one of them.”
– Samuel Beckett
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Honolulu Authority for Rapid Transit - The Hawaii State Legislature - City and County of Honolulu - The Hawaii Public Utilities Commission --- A Formula for Moving Onward and Forward
1. Clifton M. Hasegawa
President and CEO
Clifton M. Hasegawa & Associates, LLC
1044 Kilani Avenue 12
Wahiawa, Hawaii 96786-2243
Telephone: (808) 498-8408
Email: clifhasegawa@gmail.com
LinkedIn: http://www.linkedin.com/in/cliftonhasegawa
Facebook: http://www.facebook.com/clif.hasegawa
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May 5, 2015
Senate President Donna Mercado Kim, Hawaii State Senate
Members of the Hawaii Senate
House Speaker Joseph Souki, Hawaii State House of Representatives
Members of the Hawaii House of Representative
Mayor Kirk Caldwell, City & County of Honolulu
Members of the Honolulu City Counsel
Randall Y. Iwase, Chair, Hawaii Public Utilities Commission
Michael E. Champley, Commissioner
Lorraine H. Akiba, Commissioner
RE: The Honolulu Authority for Rapid Transit (HART); Hawaiian Electric Industries
(HEI), Hawaiian Electric Company (HECO), NextEra Energy – Firm Power for the Rail
Dear Senate President Kim, Members of the Hawaii State Senate, House Speaker Souki,
Members of the Hawaii State House of Representatives, Mayor Caldwell, Members of
the Honolulu City Council, Chairman Iwase, Commissioner Champley and
Commissioner Akiba,
The fate of the Honolulu Rapid Transit, the Rail, is now before you. Providing
and provisioning for firm power for the Rail is pivotal. Incumbent in your decision to
proceed:
1. Hawaiian Electric Company (HECO) and NextEra Energy, should the
Hawaii Public Utilities Commission approve the merger between
Hawaiian Electric Industries (HEI) and NextEra Energy, include as a
priority and implement immediately the minimum requirements to:
2. a. Install, connect and complete a new 138kv underground power line
through urban Honolulu,
b. Reconfigure, connect and complete the existing 46kv circuit from
Pukele Substation at the northern end of the transmission corridor
with existing and new 46kv circuits at Archer and Kamoku
substations in the southern 138kv corridor, and
c. Install and complete underground 46kv lines in Ala Moana,
McCully, Moiliili, Kapahulu, Makiki and Kakaako areas.
2. Hawaiian Electric Company (HECO) and NextEra Energy and The
Honolulu Authority for Rapid Transit (HART) negotiate and execute a
Power Purchase Agreement (PPA) for 30MW – 50MW Firm Power with
HECO and/or the City & County of Honolulu (H-POWER). That the PPA
provide for interconnection with the Oahu Grid.
3. Hawaiian Electric Company (HECO) and NextEra Energy and The
Honolulu Authority for Rapid Transit (HART) negotiate and sign a firm-
fixed price contract to relocate utility lines, poles and required installations
along the Rail path.
4. Hawaiian Electric Company (HECO) and NextEra Energy and The
Honolulu Authority for Rapid Transit (HART) negotiate and sign a firm-
fixed price contract to design, construct and bring on line the substation
near West Loch.
The following discussion on Total Power Needed for the Rail and the Timetable
provided by Ansaldo JV Honolulu conveys to you the immediacy and need for your
intervention.
The fact that Hitachi Corporation is a driving force behind Finmeccanica, parent
of AnsaldoBreda and Ansaldo STS should give credence that the timeline for delivery
and installation of the Rail Operations Center in December 2015, the delivery of the first
train to Honolulu in 2016, and projected operation of passenger service in 2019 will be
met or exceeded. www.ansaldohonolulurail.com
Total Power needed for The Rail: 30MW to 50MW Firm Power
Firm Power is electric power from a generating station available for use
under all conditions. Baseload plants (coal and nuclear), Intermediate load
plants (combined cycle natural gas), Peak load plants (natural gas or oil-
burning), Hydroelectric and Geothermal plants generate firm power.
Firm power is counted towards the energy security of the Grid;
Intermittent Power does not count towards the energy security for the
Grid.
3. Wind and Solar (Photovoltaic) - Do not provide firm power. Wind and
Solar (Photovoltaic) are classified as Intermittent Power.
Electricity from wind and solar generators are subject to weather
conditions. Wind generates more power at night, when demand is lowest.
During daylight hours, power generated by the utility takes precedence
and power from wind energy producers is generally curtailed. Solar
panels work only when sunlight is available and do not satisfy peak
afternoon/evening demand.
The Hawaiian Electric Companies will have deactivated a total of 226 MW of
Firm Power Generation by the end of 2016. This includes:
Two generating units at the Waiau Power Plant (Oahu) will be deactivated by
2016.
Hawaii Island’s Shipman plant has already been deactivated
On Maui, two of four units at Kahului Power Plant will be deactivated in
2014, and all four units will be retired by 2019.
Source: Hawaiian Electric Company (HECO)
http://www.hawaiianelectric.com/heco/_hidden_Hidden/CorpComm/Clean-
energy-milestone-reached-as-Hawaiian-Electric-deactivates-Honolulu-
Power-Plant?cpsextcurrchannel=1
HECO Owned Plants (oil) Megawatts- Firm Power
Honolulu 113
Waiau 499
Kahe 651
CIP 120
Independent power producers Megawatts – Firm Power
H-POWER (C&C Honolulu Biomass) 46
Kalaeloa Partners, L.P. (oil) 208
AES-Hawaii (coal) 180
4. Your options:
1. Keep on the course you have set, increase the tax, place a terminus date,
and allow the Honolulu Transit Authority to continue business as usual.
2. Intervene, mandate reform, implement the recommendations set forth in
the foregoing paragraphs, institute oversight to require accountability and
executive responsibility for accuracy, integrity and transparency, and
implement best management practices and procedures.
3. Terminate the Rail Project. Downside: Loss of jobs, loss of potential
revenue, liability for breach of contract and waste of funds committed,
$2,143,000,000 - $2.143 Billion, as of April 1, 2015.
http://www.honolulutransit.org/media/335577/201505-rail-update-hart-facts.pdf
Thank you very much
Aloha
Respectfully,
Clifton M. Hasegawa