The Hawaiʻi Public Utilities Commission (PUC) is currently under scrutiny as state regulators investigate serious complaints against its new chief of policy and research, Randy Baldemor.
These allegations, brought to light by an anonymous whistleblower, prompted Nadine Ando, the director of the Hawaiʻi Department of Commerce and Consumer Affairs, to suggest an investigation during a briefing before the Senate Commerce and Consumer Protection Committee.
The letter addresses concerns regarding Baldemor’s leadership style, describing him as an unqualified “ill-tempered bully” who has cultivated a toxic work environment at the PUC. It claims he has weaponized the “State’s Law of Aloha Spirit” to suppress staff complaints and provides feedback primarily through put-downs, focusing on self-promotion rather than constructive dialogue.
Ando noted during the Senate briefing that the consumer agency should appropriately investigate these allegations, even though the PUC operates independently. Her remarks occurred in the context of discussions about the complexities surrounding electric rate setting.
The PUC has recently approved Hawaiian Electric Company (HECO) to pursue a potential rate increase under a method that critics argue is inconsistent with existing laws. HECO, however, defends this potential increase as compliant with Hawaiʻi’s performance-based regulation statute.
The focus of most of the Senate meeting delved into the intricate details of performance-based regulation, requiring that utility rates be determined based on utilities meeting specific performance metrics rather than merely covering operating costs.
While the whistleblower’s complaint was included in the meeting materials and briefly addressed, it was overshadowed by these discussions. Senator Jarrett Keohokalole, who chairs the Senate Commerce and Consumer Protection Committee, acknowledged the significance of the complaint by adding a presentation about the consumer protection agency’s whistleblower process to the agenda.
This whistleblower letter asserts that Baldemor’s lack of regulatory experience, coupled with a troubling work history, raises valid concerns. Notably, he had a previous ethics charge while serving as a high-ranking official with the Hawaiʻi Tourism Authority, where the State Ethics Commission found he likely violated laws by soliciting and accepting free travel upgrades from contractors while on state business.
Baldemor’s salary at the time exceeded $200,000, yet he left the authority in 2018 after reaching a resolution with the ethics commission by paying a $6,000 fine.
In the whistleblower’s letter, the overarching issue of Baldemor’s qualifications for such a complex role is emphasized. The job description for the chief of policy and research specifically requires five years of progressively responsible experience in areas central to public utility regulation—none of which the complaint claims he possesses.
The letter points out Baldemor’s complete lack of experience in electric, gas, water, and telecommunications industries. Despite a prior role at Roberts Hawaii, a regulated bus company, the whistleblower contends it does not meet the necessary experience needed for his current position.
Moreover, the complaint mentions that multiple well-qualified candidates from both the PUC and the consumer protection agency had applied for the job, leading to concerns among staff about Baldemor’s capability in fulfilling his responsibilities effectively.
Tensions among PUC staff seem to manifest in complaints that meetings led by Baldemor often extend well beyond their scheduled time, straying from relevant discussions regarding the PUC’s operations, rendering them unproductive and wasteful.
The whistleblower’s letter cites instances of verbal and emotional abuse during these meetings, sparking fears of a mass departure among staff who feel increasingly oppressed. It notes that the work environment’s toxicity is directly linked to Baldemor’s leadership.
Additionally, criticism extends to PUC chair Leo Asuncion Jr., who is accused of fostering an atmosphere where feedback is neither welcomed nor respected. Staff reportedly feel frustrated and silenced, as past concerns expressed to Asuncion have been largely ignored.
Details of the whistleblower complaint were briefly referenced in the Senate hearing, but there was little time allotted for substantive discussion. Ando explained that while anonymity in these complaints is crucial to protect employee identities, the broad nature of the allegations complicates follow-up processes.
Senator Keohokalole seized the moment to directly question Asuncion regarding allegations of personal interactions with executives from Hawaiian Electric at social events, which raised eyebrows in light of the commission’s oversight role over the utility.
Asuncion firmly denied having attended any events hosted by members of Hawaiian Electric, further stating he has never engaged with employees of any regulated utility in such social capacities.
As the investigation moves forward, the PUC has committed to cooperating fully, stating, “The Hawaii Public Utilities Commission takes any complaints seriously and will fully cooperate with any investigation relating to a complaint.” They emphasized that thorough process must be given due consideration in addressing any complaints related to their employees.
Concerns about maintaining a healthy work environment are paramount, particularly as the PUC shoulders the responsibility of regulating critical utilities across the state, including electric, water, and transportation sectors like Young Brothers, which handles interisland cargo shipping.
In light of these allegations, scrutiny over Baldemor’s qualifications and management style will likely increase, showcasing the necessity of effective leadership and a supportive work culture within such an influential regulatory agency.
image source from：civilbeat
