Sandwich Isles Communications violated state laws and its obligations to its customers when it cut telephone and broadband services earlier this month without ample warning and is likely to face penalties for abandoning its services, according to testimony Monday before the Hawaii Public Utilities Commission.

Sandwich Isles’ President Al Hee was in the hot seat for much of Monday’s six-hour hearing to determine if the company broke the law when it gave its customers just a week’s notice that service could be terminated in late May. Its customers were given even less notice when services were actually cut in early June.

State and federal laws as well as Sandwich Isles’ certificate of authority, which allow it to operate in the state, require at least 30 days notice.

“There’s no doubt that we did not conform with the certificate of authority,” Hee said in his closing arguments.

The impact to Hawaiian homeland beneficiaries in Kahikinui on Maui and Puukapu on Hawaii island were particularly significant. They are far from areas that have cell service, and the shutdown of telephone services presented safety issues when households were unable to contact emergency services.

Hee argued that state and federal authorities should have been aware of the impending shutdown because Sandwich Isles has been losing money for at least the last four years. He blamed decisions made by the state Department of Hawaiian Home Lands to allow other carriers to operate on homesteads, thereby shrinking Sandwich Isles’ customer base.

State regulators and attorneys for the consumer advocate didn’t seem to buy that.

“There’s a lot of finger pointing going on, but I don’t hear a lot of accountability for this error,” Scott Boone, a state attorney representing the consumer advocate, said.

The PUC is expected to issue a written order that lays out what penalties, if any, Sandwich Isles will face and what the next steps will be to address the ongoing service disruption, PUC Chairman Leo Asuncion said.

Hee argued that the Hawaiian Homes Commission, and not the PUC, has jurisdiction in a case like this involving a provider on Hawaiian homelands. He also contended that the rules the commission was operating under didn’t apply to a company like Sandwich Isles, which was initially created to be the only company that serviced homesteads in rural areas.

But over the years, DHHL opened the way for other telephone and broadband providers to hook up people on homelands. Hee believes that lead to the financial ruin of his company.

The company defaulted on more than $130 million in federal loans, and a federal court entered a monetary judgment against it in 2020. That same year, the Federal Communications Commission fined Hee $50 million for violations related to fraud, charges that sent Hee to federal prison in 2016.

But what really did in Sandwich Isles, according Hee, was a recent bid by Hawaiian Telcom to acquire the conduits that bring connectivity to homes without also acquiring the equipment necessary to actually plug in those households. Because that equipment is still owned by Sandwich Isles, the company had a duty to provide services to its customers despite its financial straits.

Waimana Enterprises, Sandwich Isles’ parent company, also put in a bid for the conduits but lost to Hawaiian Telcom. Under questioning by commissioners, Hee implied that Sandwich Isles and Waimana are no longer responsible for people on homelands.

“If no one is truly interested in doing it other than Sandwich Isles and Waimana, that’s not our kuleana,” Hee said. “We’re not the people responsible for those Hawaiians out there that don’t have services. We were the solution.”

Boone’s questions focused on public safety concerns DHHL raised in written responses to the PUC’s subpoenas. Some households may not be able to dial 911 because their landlines and internet are down and they are out of the range of cell service.

Boone asked Hee if anyone at Sandwich Isles researched which of their customers would still have access to internet if their phone lines were cut. Hee said the company had not.

“We terminated service because we ran out of money. We didn’t research anything,” Hee said.

Hee said several times during the hearing that he wasn’t able to provide specific answers because he did not participate in the day-to-day operations of Sandwich Isles. All of its remaining 25 to 30 employees were terminated June 1, according to Hee.

Under questioning from Boone, Hee said the areas he knew that had lost voice services included Kahikinui on Maui, Puukapu on Hawaii island, parts of Molokai, and areas of Kauai. Hee also said that DHHL offices as well as Sandwich Isles’ other clients like the U.S. Coast Guard and Target still have service because of contractural obligations with those entities.

Caroline Ishida, the PUC’s chief counsel, wanted more specifics on where there are service outages, as well as where households may still have connectivity because they were not automatically disconnected yet.

“Does anyone out in the world know where those services are if you don’t know?” Ishida asked.

“I don’t know,” Hee said.

Ishida also asked if Sandwich Isles would refund customers who still paid their bills even while their services were down.

“Absolutely, no question about it,” Hee said.

The interactions between Hee and the PUC heated up once the commissioners had their turn to ask questions.

In one exchange, Hee said Sandwich Isles could restart services if the PUC could ensure it starts gaining revenue.

“If we order you to restart service, do you have the financial and personnel and technical capacity to perform that restart of service?” Commissioner Colin Yost asked.

“As long as that order has money attached to it, yes,” Hee said.

Commissioner Naomi Kuwaye pressed Hee on how much financial assistance Sandwich Isles’ parent company, Waimana Enterprises, is able to provide the beleaguered telecommunications company. Hee said Waimana’s financial support has already been in the millions.

Both Kuwaye and Yost asked repeatedly why Sandwich Isles did not notify its customers in advance that they would lose service, and asked Hee if he understood that Sandwich Isles’ certificate of authority required that.

“That’s what you got, and there are rules established that govern what happens under a COA. You are not disputing that,” Yost said.

“I am not disputing that,” Hee replied.

Picture this: you’re ready for a relaxing day at the beach, sunblock applied and book in hand. But instead of unwinding, you find yourself anxiously clutching a waterproof bag with your phone, keys, and wallet bobbing in the ocean beside you. According to the Honolulu Police Department, this is the new norm for safeguarding your valuables. While the intention behind the advice might be sound, it poses practical questions about usability and even risks to personal electronics.

Bridging the safety perception gap.

In a place celebrated for its laid-back vibes and stunning landscapes, the contrast between the promoted safety and actual experiences can be stark. Reports and statistics paint a picture of declining crime rates, yet the police department’s advisory to hold onto your valuables while swimming seems to undermine these claims. If Hawaii is as safe as advertised, why do such drastic measures feel necessary?

The local’s take: is this advice practical or preposterous?

As someone who has spent countless days enjoying Hawaii’s beaches without incident over decades, the recommendation to swim with my valuables feels more comical than practical. It suggests a lack of effective, on-the-ground strategies to deal with theft and other safety issues proactively. Moreover, the advice might even lead to new problems, like damaged electronics or distracted swimmers.

When we travel to another island, we usually wrap the rental car key in a towel and place it near the lifeguard station with our other belongings. Our cell phone and wallet (with limited cash and a credit card) are left hidden under the car seat and out of view before leaving. In all the years we have lived on Kauai and traveled to other islands, we have thankfully never had an issue.

Salt water and cell phones don’t mix.

When cell phones get wet with salt water, like from the ocean in Hawaii, bad things can occur. Salt water is particularly harmful because it is highly conductive and corrosive. In contact with the metal components inside a cell phone, it can cause oxidation and corrosion leading to permanent damage. When the salt water dries, it leaves behind minerals that can form causing further damage.

Some say that if your phone gets wet in salt water, keep it turned off then immediately dry it then place in a bag with a desiccant or dry rice. This may help absorb moisture, but it has not worked for us!

Conclusion: a call for realistic and practical safety strategies.

Hawaii’s reputation as a safe tourist haven is valuable, and maintaining it requires more than just reactive measures. It’s time for local authorities to rethink how they address safety concerns, ensuring that their advice doesn’t just shift the burden to tourists but genuinely enhances their security. Let’s hope for a strategy that supports uninterrupted enjoyment of Hawaii’s beautiful shores rather than turning beachgoers into anxious guardians of their gear.

What’s your take on the Honolulu Police Department’s advice? Have you ever taken your valuables into the ocean? Share your experiences and thoughts below.

June 17, 2024 Anne Fischer

From pv magazine USA

Hawaii has the highest average electricity price of any state at $0.43.93 per kWh, nearly triple the U.S. average, yet this project will cut that cost for many residents. Developer AES Hawaii projects that the Kūihelani Solar-plus-Storage facility will generate enough electricity for 15% of Maui’s needs at just $0.08 per kWh.

“Maui residents will soon be seeing the benefit of Kuihelani in their electric bills and the reassurance of knowing they will have reliable electrical power for their homes and businesses,” said Maui Mayor Victorino.

Islands that are not covering their energy needs with renewables are beholden to imported fossil fuels. The energy generated by this facility will offset the need to import an estimated 2 million barrels of oil.

Situated on 450 acres in central Maui, between Kūihelani Highway and Maui Veterans Highway, the project supports the state’s goal of 100% renewable energy and decarbonization targets by 2045. AES Hawaii broke ground for construction less than two years ago, and as with most large-scale solar projects, the company sought input from the community before construction. As a result, AES Hawaii modified its plans.

“We reduced the size of the project site by 35%, minimizing the project’s environmental footprint, while maximizing the usage of the available land in a responsible manner,” said Sandra Larsen, Hawaii market business leader for AES.

Hawaiian Electric is the offtaker of the electricity, having signed a 25-year power purchase agreement with AES Hawaii.

Nearly 300 jobs were supported during the construction of Kūihelani Solar-plus-Storage and generated approximately $68 million for Maui’s economy, according to AES Hawaii. In addition, the project area is also designed for agricultural use.

AES Hawaii has more than 300 MW of renewable energy in construction or operational, enough to power 120,000 homes statewide. The company estimates that this is the equivalent of eliminating more than 175,000 metric tons of carbon emissions and more than 15 million barrels of oil consumption throughout project lifecycles.