Petition to make HECO publicly owned, non-profit

[opihikao]

Now, THIS is a petition I hope half a million people sign! JMO.

FYI: (*Snipped - More at link including petition):

Could Hawaiian Electric become a publicly owned, not-for-profit entity? One group thinks so, and is petitioning Governor Ige to look into the possibility of doing so.

Supporters say the benefit to consumers is in whose best interests are, and could be served by the utility.

"The only thing a publicly owned utility is going to care about is how do we best serve our customers. Whereas a privately owned utility constantly has to think about its shareholders," said Robert Harris of the Alliance for Solar Choice.

Harris says the downstream effect for consumers, as observed in other areas of the country that have such utilities, is lower electricity rates and better customer service.

"Government can actually access capital cheaper than any private entity could, and we could potentially hire any management company we wanted across the country, and try to find the best one that's really going to make sure we get the best service in Hawaii that we can," said Harris.

Hawaii County and Maui County are reportedly interested, and there are multiple options available. Kauai has a cooperative or co-op, which places control of the organization in the hands of employees and the patrons it serves.

"There's also a possibility of municipalization where the counties take over power generation in their region," added Harris.

The promise of lower rates and higher customer care may seem like a pipe dream to some, but Harris says taking control of the utility is actually entirely feasible.

"Any utility operating in the state of Hawaii is operating because it has a franchise granted to it by the legislature. So at any time the legislature could take that franchise away or give it to someone else".

http://www.hawaiinewsnow.com/story/29019...non-profit

[Lee M-S]

If HECO becomes publicly owned, does HELCO automatically follow, or would that be a separate issue?
I signed, just in case.

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[PaulW]

I've had too many bad experiences with government-run companies.

One thing for certain is that customer service will get much, much worse.

Good luck with it though!

[pahoated]

Another brain dead idea from some transplant in Hawaii. HECO is a privately owned corporation. This guy is too dumb to understand the state only regulates the utility, it doesn't have any ownership. Privately owned, non profit? Who is the "private"? Why non profit? What is the state going to do, swoop in and raid the corporation, steal it and sell it to a user co-op? So now we are advocating totalitarian takeover of private companies? Why stop there? Let there be the Bolshevik revolution of the entire Proletariat, including Monsanto, distribute all private ownership across the people equally.

"Aloha also means goodbye. Aloha!"

[dakine]

pahoated - the state only regulates the utility...

Actually Ted the take away quote from the news article (on Hawaii News Now) is:

"Any utility operating in the state of Hawaii is operating because it has a franchise granted to it by the legislature. So at any time the legislature could take that franchise away or give it to someone else"

And there is mention of both Hawaii County and Maui County being interested in the idea.

More at the link opihikao provided

[Thunderfoot]

I have been in the non-profit world for over 30 years, and there is no way for them to become a nonprofit at this point because they did not apply to be a non-profit within the 27 month window from inception ( The only exception is Churches), they also do not have IRS non-porfit Tax Code compliant By-Laws. In order for them to comply with IRS they would actually have to dissolve and reform to meet IRS requirements. If they did that they would technically be a "governmental unit" according to publication 557, but they would be operated by a board of directors. The only time the "governmental unit" aspect comes in is if they should dissolve, their assets can not be distributable to members or officers. It must be given to another IRS nonprofit compliant organization because the entity is considered a public entity, which is why they are required to show you their 501 application and tax returns, unless you are a Church because they do not have to file form 990 every year. Of course they must also have non-profit activities and be publicly supported. Paying an electric bill is not a donation, so that would not qualify as a 501(c )(3), but if they added other non-profit activities they might qualify. They would more likely apply for the 501(c )(4) if they were going to go for non-profit status. There are other issues as well, but as you can see they would not meet IRS Tax Codes to qualify to be a non-profit at this point.

[leilanidude]

It would have to be bought out, just like what is happening now. The cost would be very prohibitive.

At the least, the last thing this county (or the other counties or state) needs, are thousands more government employees, sucking off the tax dollars.

[kalakoa]

One thing for certain is that customer service will get much, much worse.

Accountability will also be reduced from nearly-zero to less-than-zero.

thousands more government employees, sucking off the tax dollars

That tax base would also be increased by HECO's profit margin; even if the new coop manages to squander that money, it's still a net win (sort of) if taxes don't have to be raised.

On the Big Island, there is an opportunity for serious innovation, it's really too bad nobody is looking past the money to see this.

[terracore]

Didn't Kauai already do this? Did their rates go up, down, or remain the same?

Even if the rates don't go down, if they made upgrades to the grid and buried power lines, we wouldn't be without power for weeks every time a storm comes through.

[Rene Siracusa]

Notwithstanding the obstacles raised by Thunderfoot, the petition only asks the governor to do a study. A proper study would look at all the issues and suggest solutions, offering the positives and negatives of each. Only then could a decision be made as to whether or not the idea is desirable or feasible and determine the best way to go about it. And, of course, there is always the No Action Alternative, which would recommend that we keep the status quo.

I can visualize a scenario in which the State purchases HECO, including its subsidiaries like HELCO; then HECO pays off its shareholders with the proceeds; the State then creates a Dept. of Electrical Power Generation and Distribution (under whatever name) and transfers all the HECO assets to it. All the employees suddenly become government workers. The system continues to operate as it does now, EXCEPT that decisions are made with a different set of rules, guidelines, goals and measures of achievement. So the State legislature would have to enact some enabling legislation to HRS and create department administrative rules - not rocket science. Not undoable.