The State Senate Committee On Commerce And Consumer Protection, chaired by Sen. Jarrett Keohokalole, has an interim hearing scheduled this morning at 9:30, open in person and by live stream on the Senate YouTube channel.

It looks like a lot of energy policy wonk stuff.

In 2018, the Legislature passed the Hawaii Ratepayer Protection Act, directing the PUC to implement performance-based regulation (PBR), which took effect in 2021 for a five-year term. The PBR framework uses alternative regulatory mechanisms to align utility incentives with performance and policy goals. This briefing will provide an update on the framework and its implications on electrical utilities and rate payers in the future.

But a tip last night suggested I take a good look at the agenda.

And there’s the “easter egg” waiting to be found.

Item #4: Briefing on PUC Whistleblower Complaint Process

And, there attached to the other briefing materials regarding the PUC’s performance-based regulation of Hawaiian Electric, is a 6-page complaint by an anonymous whistleblower which describes disarray and disfunction in an important part of the agency, and pointing fingers at the current PUC chair, Leo Asuncion, and the recently appointed Chief of Policy and Research, Randy Baldemor.

The inclusion of a discussion of the whistleblower complaint process on the hearing agenda, coupled with disclosure of the complaint among the public briefing materials, shows the committee is taking this complaint seriously and not trying to sweep it under the proverbial rug.

Here are some excerpts from the whistleblower complaint. The full letter appears below.

• As you are aware, the Public Utilities Commission plays a critical role in safeguarding the reliability and safety of Hawaii’s electric, gas, water, and sewer utilities, as well as Young Brothers; ensuring the affordability and fairness of utility rates; overseeing HECO’s securitization and liability cap; and advancing Hawaii’s renewable energy goals.

However, the Commission’s ability to carry out this mission is currently being undermined by a toxic and ineffective work environment caused by the new Chief of Policy and Research, Randy Baldemor. We ask that the internal operations of the PUC be promptly and thoroughly investigated, and corrective action taken to address serious ethical and human resources concerns.

• At the PUC’s annual holiday party in December 2024, Chair Leo Asuncion announced that his friend, Randy Baldemor, would be the new Chief of Policy and Research—the top technical and policy advisor for the three Commissioners. Leo told everyone that Randy also lives in Hawaii Kai and they barbeque together with HECO executives.

• It was a running joke at the PUC-new minimum qualification requirements for Chief – “likes to barbecue with Leo and HECO execs” and “lives by Chair Asuncion in Hawaii Kai.”

• The PUC Chair, Leo Asuncion, has created an environment where staff feel unable to share feedback, as he has been unreceptive to previous concerns and remains closed off to input. This has led to a tense atmosphere, where employees have no safe internal channels for raising concerns without retaliation.

• Randy had zero experience in public utility regulation.’ He has zero experience working in electric, gas, water, wastewater, and/or telecommunications industries. He has zero experience with Young Brothers. He has also clearly demonstrated he has zero knowledge of utility regulation and no understanding of utility systems and technologies. Accordingly, he is incapable of leading his team and appropriately
advising the Commission on all regulated industry policy matters [which is a primary job requirement].

• He is not capable of performing the duties of the Chief of Policy and Research due to his complete lack of regulatory and industry experience and apparent disinterest in learning about utilities.

• As COO of HTA, Randy was investigated by the Hawaii State Ethics Commission for accepting multiple courtesy upgrades to business class flights and hotel accommodations while traveling on official state business. He directed staff to solicit these upgrades. (See: Resolution of Charge 2017-4 at https://files.hawaii.gov/ethics/advice/ROC2017-4.pdf)

Of the four people fined, Randy received the biggest fine [$6,000], because he directed staff to seek upgrades for him. The Ethics Commission apparently specifically chose not to fine HTA staff directed by Randy to seek upgrades.

An HTA staff person stated: “Anyone who questioned Randy or George got fired or was asked to resign.

• No one wants to question Randy because of his temper.

• To verify the concerns raised in this letter, the legislature could conduct anonymous interviews with those who work most closely with Randy. This includes his 10 staff in the Policy Branch and many of the 10 staff attorneys, who can all confirm his unprofessional conduct and lack of qualifications.

The person who tipped me to the complaint commented: “Wasn’t me but I agree! Only scratches the surface.”

Hawaii Public Utilities Commission whistleblower complaint by Ian Lind on Scribd