A Dec. 23 order by Hawaii’s utility commission may lead to the most significant change in power system regulation in U.S. history by giving Hawaiian Electric new control over its future, proceeding participants said.
Hawaiian Electric will become the first U.S. investor-owned utility to transition away from cost of service (COS) regulation. Over five years, it will move from earning revenues based on capital expenditures to Performance Based Regulation (PBR) and financial stability, based on limited rate-based revenues and rewards for achieving public policy goals and cutting customer costs.
