HI SR19

Requests the Public Utilities Commission to establish and accelerate implementation of a cost savings incentive mechanism to motivate electric utilities to reduce energy costs.

Identifies that Hawaii's electricity rates are at record levels due to high petroleum costs and that current regulatory mechanisms do not provide sufficient incentives for utilities to reduce operating expenses or seek lower-cost alternatives.

Notes that the energy cost adjustment clause allows utilities only direct cost recovery without profit opportunity, eliminating incentive to aggressively reduce energy costs or pursue renewable energy alternatives.

States that the current single authorized rate of return methodology fails to differentiate between investments in grid modernization (which should be encouraged) and investments in old, inefficient fossil generation (which should be discouraged).

Directs the Public Utilities Commission to implement economic incentive mechanisms and cost recovery regulatory mechanisms to reduce costs, increase renewable energy integration, accelerate retirement of fossil generation, and modernize electrical grids.