HB1283 Summary

• Establishes the Hawaii Ratepayer Protection Act to align electric utility business models with customer interests and public policy goals through performance-based regulation.

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

• Mandates PUC review of utility performance on nine criteria including renewable energy integration, rate affordability, service reliability, customer satisfaction, system data access, competitive procurement, and employee compensation.

• Shifts regulatory focus from rewarding capital expenditures regardless of performance to tying utility revenues directly to measurable outcomes that benefit ratepayers and advance Hawaii's energy goals.

• Takes effect July 1, 2017, with option for PUC to delay implementation requirements until January 1, 2020.