Ka`u News Briefs Tuesday, Jan. 13, 2015

HERMINA MORITA, CHAIR of Hawai`i Public Utilities Commission, has resigned. 

      The PUC said it made its decisions to reject the 20-year, fixed-price contracts largely on the basis of the AKP contracts likely resulting in more expensive electric rates.      The PUC called the price at which the AKP-produced biofuel would have been sold to the electric company “excessive, not cost-effective,” and “unreasonable and inconsistent with the public interest.” The commission wrote: “In effect, from a real world, bill-paying perspective, the HECO Companies seek the Commission’s approval to consistently charge affected ratepayers a premium for HELCO’s purchase and use of AKP-produced biofuel under the terms of the twenty-year contract. Such a result is unreasonable and not in the public interest.”
      While the commission wrote that its decision was largely based on the high cost of the biofuel, it noted commissioners’ other major concerns with the contract, such as the likelihood that using the biofuel to keep the electric company’s existing power plants operating “will displace or curtail existing cheaper renewable alternatives.”
     The PUC also called the proposed biofuel pricing “a mystery to all but a select few,” as it remained confidential to all but the electric company, `Aina Koa Pono, the PUC and the Consumer Advocate. The PUC stated in its decision that the price would have been an estimated eight-figure amount (at least 10 million dollars) in 2015, the first year in which the sixteen million gallons of biofuel could have been produced. “Over the course of the twenty-year contract period, the total estimated cost impact of using AKP-produced biodiesel instead of petroleum fuel will be a nine-figure amount,” (a minimum of 100 million dollars), the PUC wrote.
      According to the Honolulu Star-Advertiser, “Morita has been in the crosshairs for decisions affecting `Aina Koa Pono. … AKP has some highly placed supporters that made this a particularly sticky decision to make, politically. For example, the biofuel company was represented by William Kaneko, Abercrombie’s campaign manager.”
      Morita’s term had ended June 30, 2014, but Gov. Neil Abercrombie kept her on a holdover basis. “We are at a very critical juncture in developing our clean energy future, and the Public Utilities Commission needs stability to continue to address many of the important regulatory issues before it,” Abercrombie said at that time.
      Abercrombie’s decision followed reports that he would perhaps replace Morita after she and fellow commissioners Michael Champley and Lorraine Akiba rejected the two proposed contracts between AKP and HELCO.
     Morita and her husband also were accused of having illegal vacation rentals on conservation property. In response to those allegations, Abercrombie said, “At the present time, Chair Morita has business before the Board of Land and Natural Resources which must be addressed. She will continue to serve in the position while these issues are being resolved.”

      During a meeting in Pahala with Sen. Russell Ruderman, several attendees urged the senator to garner support for keeping Morita as PUC Chair. Ruderman said he supported her reappointment and that she shouldn’t be punished for turning down AKP. Among those who asked Ruderman to support Morita was local police commissioner Bobby Gomes, who earlier testified against AKP at various community meetings.