Opinion ID: 1150326
Heading Depth: 2
Heading Rank: 2

Heading: whether the energy clause is void.

Text: The appellant does not contend that the PUC failed to make the necessary findings of fact and conclusions of law in final order No. 4084 on this issue. However, the appellant contends that the energy clause is invalid because it is designed to create profits for the appellee and because rules and regulations are lacking for notifying the public of rate increases. Appellant further contends that procedures are lacking for monitoring the formulas so that serious inequities and overbillings could occur. The energy clause which was adopted by the Commission in interim order No. 3852 and final order No. 4084 was essentially that energy clause proposed by the PUD at the show cause hearings in April, 1974, and put into effect by the Commission at its April 16, 1974, quorum meeting. [19] The testimony of Mr. LeRoy Yuen regarding the PUD's proposed clause established that the purpose of an energy clause was to recoup only the cost of fuel and not to create profits for the utility company or to bring in revenues sufficient to permit the utility company to meet its authorized rate of return. There is no support on the record for appellant's contention that the energy clause, as adopted, was designed to create profits for the applicant. Appellant seeks to void the energy clause on the basis that rules and regulations are lacking for notifying the public of rate increases. This argument is without merit. HRS § 269-16 mandates that notice and hearing be afforded to the public and to the parties before rate increases can be implemented. Assuming, arguendo, that the energy clause as authorized by the Commission constituted a rate increase within the meaning of HRS § 269-16, in the present case, such notice and hearing was given prior to the Commission's final order. There is no statutory provision which requires the Commission to promulgate additional rules in order to authorize rate increases. Appellant argues that serious inequities and overbilling could occur in the future. Whether such inequities could occur or not is irrelevant to the present appeal. Appellant has failed to show that the energy clause as approved by the Commission in this case is unjust and unreasonable. We note that should the rate schedules as approved by the Commission in its final order become unjust and unreasonable in the future, the appellant will have recourse to complain to the Commission pursuant to HRS §§ 269-7 and 15. The appellant would also have recourse to complain to the newly created consumer advocate as provided for in HRS §§ 269-51 through 55.