Advancing Rate Design and Performance-Based Regulation in Hawaii

We are always pleased to celebrate the achievements of our partners and there is much to celebrate about the Hawaii Public Utilities Commission’s progress on reforming rate design and utility regulation.  In December, the Hawaii PUC filed Gridworks’ Advanced Rate Design Working Group Report, which synthesizes the outcomes of a three-month working group process aimed to support parties’ development of advanced rate design proposals.  The working group series helped to establish a shared understanding of modern rate design principles and practices and facilitate dialogue among the participants to share perspectives and objectives for advanced rate design.  The Hawaii PUC is currently reviewing parties’ proposals with the intent to adopt new rate design later this year.

Read ” Advanced Rate Design Working Group Report”

Also in December, the Hawaii PUC quietly issued a Decision and Order in the Performance-Based Regulation (PBR) docket that:

  • Approves a multi-year rate period with indexed revenue adjustments; 
  • Continues existing revenue decoupling and cost tracking mechanisms;
  • Adopts a framework for expedited review of pilots; and
  • Launches a portfolio of Performance Incentive Mechanisms designed to achieve priority outcomes such as renewable resource integration, expedited interconnection, acceleration of advanced meter roll out, and energy savings for low- and moderate-income customers.

The PBR Framework also includes an Earnings Sharing Mechanism and a Re-Opener Mechanism to safeguard the utility and customers from excessive earnings or losses, and provide flexibility for the Commission to revisit the framework as appropriate.

With much aloha, we congratulate the Hawaii PUC and Hawaii’s stakeholders in achieving this momentous milestone.

Post by Deborah Shields