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The Honolulu Advertiser
Posted on: Wednesday, February 11, 2004

Two state agencies criticized in auditor's report

By Curtis Lum
Advertiser Staff Writer

The Hawai'i Public Utilities Commission and Division of Consumer Advocacy, two agencies charged with looking out for the welfare of the public, lack strategic and vision plans and "trudge through daily operational work mired in process and individual case details," according to an audit released yesterday.

The Office of the Auditor's report was critical of both agencies and said they suffer "core deficiencies" that were detailed in two other audits as far back as 1975. But neither agency, the audit said, addressed the deficiencies and "serious problems (that) persist."

The PUC regulates public utility companies that provide electricity, gas, telephone telecommunications, private water and sewage, and motor and water carrier transportation. The Division of Consumer Advocacy represents the interests of utility services consumers before state and federal agencies.

But the audit said both agencies' lack of a strategic plan has resulted in poor personnel management and staffing shortages.

The PUC, the audit said, "shirks" policy-making responsibilities and failed to adopt administrative rules despite laws that mandate change. The division, the audit said, has failed to educate the public on public utilities regulation.

"The division does not adequately represent, protect and advance the interests of the public in its failure to fulfill its role in utility education," the audit stated.

In response to the audit, PUC Chairman Carlito Caliboso said the commission has begun to put together a strategic plan. In a Jan. 30 letter to the auditor, Caliboso acknowledged that the lack of vision has affected PUC operations.

The heads of the Department of Commerce and Consumer Affairs and the Division of Consumer Advocacy also acknowledged the shortcomings outlined in the audit and said many are being addressed. They include an updated mission statement, a no-gift policy, hiring of an education specialist, and the proposing of legislation to streamline regulatory processes.

Reach Curtis Lum at 525-8025 or culum@honoluluadvertiser.com.