Tom Gorak was sworn in Friday as an interim Public Utilities commissioner, taking the place of Michael Champley, amid controversy over whether Gov. David Ige is trying to influence a major decision by the independent panel.
Champley, whose term expired Thursday, said he was “disappointed” in the governor’s decision to replace him while the Public Utilities Commission has yet to rule on the sale of the state’s largest electrical utility.
“I assumed that I would be a holdover,” Champley said, referring to the practice of keeping a commissioner in place until a replacement is appointed and confirmed by the state Senate. “I’m disappointed that I may not be able to be a part of the process.”
Ige announced the shake-up at the PUC just days before the three commissioners were expected to issue a decision on Florida-based NextEra Energy Inc.’s proposed $4.3 billion purchase of Hawaiian Electric Industries Inc.
Gorak was sworn in around 8 a.m. Friday morning, said Randy Iwase, chairman of the PUC.
“He is a fully empowered commissioner,” Iwase said.
When announcing Gorak’s appointment Wednesday, Ige — an outspoken opponent of NextEra’s purchase of HEI — said he was looking for a commissioner whose views aligned with his own.
Ige’s decision to replace Champley has stoked a new round of drama in deliberations over the NextEra deal that have stretched on for 18 months and included hundreds of thousands of pages of legal filings and 22 days of hearings.
Champley’s term was up Thursday, but many expected the governor to keep him on as a holdover until there was a decision on the NextEra deal.
State senators are considering taking legal action against the governor, which could further prolong a final outcome in the proposed sale.
Hawaii Senate President Ron Kouchi (D, Kauai-Niihau) said Thursday he might challenge Ige’s appointment of Gorak.
Ige asked Attorney General Doug Chin for an opinion on the appointment. Chin said Ige had the authority to appoint an interim commissioner.
Sen. Gil Keith-Agaran (D, Waihee-Wailuku-Kahului) said Chin’s opinion seems to contrast with established belief.
“It seems that the current attorney general has given some advice to the governor that is different from what has been the longtime view of the boards and commissions, including the PUC,” he said. “That is that the term of the commissioners basically gets held over if a replacement doesn’t come up during a legislative session, so the Senate has time to confirm.”
Not all senators shared Keith-Agaran’s concerns. Sen. Will Espero (D, Ewa Beach-Ocean Pointe-Ewa by Gentry-Iroquois Point) and Les Ihara Jr. (D, Kapahulu-Kaimuki-Palolo) said they agreed with the governor.
Chin also said the appointment could delay the PUC’s ruling on NextEra.
“We caution that such an appointment might delay the deliberations in the NextEra case,” Chin wrote in his letter to Ige. “And the appointment could face legal challenge.”
Asked whether he is concerned about a possible legal challenge, Ige said in an email, “No, we trust in the AG’s opinion on this matter. We are up for the challenge, if necessary.”
Champley said he wrote to Ige before the announcement, saying he was willing to stay on as a holdover to rule on NextEra. He said it is common for a commissioner to be held over when there is a major decision pending.
“Let me just put it this way,” Champley said. “If I look at other states, holding commissioners over (for) orders with major dockets pending is a practice that has been done with some regularity.”
Champley said because of the two opposing views, it is critical to determine and follow the proper process in appointing a new commissioner.
“It is the governor’s right to nominate whomever he wants to the commission,” Champley said. “But the process for selecting a PUC commissioner is important and needs to be followed. And I think here, it appears to be two points of view regarding how that process should work — the governor and the Senate. So, I think it is important to find out what the process should be … and then adhere to it.”
“But I would be pleased to be a part of the merger decision process if asked,” Champley continued.
When asked about potential legal action by the Senate to stop Gorak’s appointment, Iwase said he has no control over outside parties and that the PUC will be focusing on the pending decisions.
“We can’t control that,” Iwase said. “We’re focused on the dockets. We have ongoing business.”
Champley said he found out about Gorak’s appointment during the governor’s news conference Wednesday.
“I, like others, found through the press conference,” Champley said.
Champley was appointed to the PUC in 2011 by former Gov. Neil Abercrombie as an interim appointment as well. A distinction between Champley’s interim appointment and Gorak’s is that in Champley’s case the previous commissioner had resigned. Champley said he did not resign, but instead offered to stay on.
“I filled a vacancy after somebody resigned. So when I came up … there were only two commissioners on the job,” Champley said.