In re Hawaiian Electric Co.

OPINION OF THE COURT BY

TANAKA, J.

Hawaiian Electric Company, Inc. (HECO) appeals the Public Utilities Commission’s (PUC) decision and order which approved *446less than half of the rate increases sought by HECO. The sole issue on appeal is procedural: whether the PUC must give notice to a utility that an expense item previously accepted in setting rates is now questioned, so that the utility may present evidence on its behalf. The answer, on state due process grounds, is yes, and so we reverse.

I

On July 6, 1982, HECO filed an application for rate increases with the PUC. Three volumes of HECO’s…