Performance-Based Regulation
Government
State of Hawaii Public Utilities Commission
More Renewable Energy
Why We Invested
To accelerate renewable energy innovation and utility efficiency
On Dec. 23, 2020, the State of Hawaii Public Utilities Commission announced the approval of its forward-thinking performance-based regulatory (PBR) framework encouraging Hawaiian Electric to further develop and improve its services to accelerate renewable energy innovation and utility efficiency. As the framework’s name suggests, PBR will “fundamentally transform Hawaiian Electric and accelerate the drive towards more efficient operations, lower electricity rates, improved services and offerings, and achievement of the State’s clean energy goals,” as the commission stated in its announcement.
On June 1, 2021, the PBR framework went into effect, offering Hawaiian Electric with new opportunities to financially benefit from the alignment of their interests with the State of Hawaii's clean energy and decarbonization goals. Comprised of a suite of mechanisms that encourage exceptional performance, improve the customer experience, and assures more efficient management of the utility’s costs, PBR reflects a balanced regulatory structure that emphasizes Hawaii’s commitment to a clean energy future.
Our Partner
The Hawaii Public Utilities Commission was established in 1913. The commission’s primary duty is to protect the public interest by overseeing and regulating public utilities to ensure that they provide reliable service at just and reasonable rates. Performance-based regulation represents a sea change in how the electric utility is regulated in direct service to that ambitious goal.
How We Partnered
As an intervenor in the PBR proceeding, Ulupono Initiative participated in two years of collaborative work meetings and workshops with stakeholders. As a result of commissioners’ determination, commitment and willingness to collaborate, Hawaii now has a bold game plan to match its bold energy goals.
Today is an historic and exciting day for utility regulation in Hawaii. Utilities and commissions from across the country are watching closely as Hawaii leads the way in transforming public utility regulation and supporting aggressive clean energy goals.