Hawaii Public Utilities Commission Performance Based Regulations

The Hawaii Public Utilities Commission has issued a decision and order adopting a comprehensive framework of utility regulations to align Hawaii electric companies’ financial interests with Hawaii’s clean energy goals and customer needs. The performance-based framework adopted by the Commission will focus utilities on performance and alignment with public policy goals, as opposed to growth in capital investments or other traditional determinants of utility earnings. Utility revenues will be based on a combination of annual revenue adjustments, designed to implement cost control and savings for customers, with the opportunity to earn additional performance revenues for delivering performance towards achieving key regulatory objectives. Performance incentive mechanisms include rewarding the utility for supporting low-income customers, promoting grid investment efficiency, and accelerating renewable portfolio standards.