HI HB2649

Requires the Public Utilities Commission to establish performance incentive mechanisms by January 1, 2020 that directly tie electric utility revenues to achievement on specific performance metrics.

Performance metrics may include compliance with renewable portfolio standards, electric rate affordability, service reliability, customer service levels, system information access, renewable energy integration, and competitive procurement execution.

Addresses concerns that investor-owned utilities have increased profits while electricity consumption has declined, and that current regulatory policies financially incentivize utilities to increase consumer costs rather than control expenses.

Establishes the "Hawaii Ratepayer Protection Act" to protect ratepayers from potentially unnecessary costs by requiring electric utility rates be considered just and reasonable only if derived from an earnings impact mechanism.

Takes effect July 1, 2030, but allows the Public Utilities Commission to implement earlier at its discretion, no later than January 1, 2020.