HI SB21

Requires the Public Utilities Commission to establish a Water Carrier Inflationary Cost Index automatic adjustment mechanism by July 1, 2026, for water carriers subject to Chapter 271G, Hawaii Revised Statutes.

Sets the automatic adjustment mechanism to apply annually based on the percentage change in a Product Price Index, capped at plus or minus 5 percent per year, with consideration given to inflation indexes reported by the U.S. Department of Commerce Bureau of Economic Analysis.

Implements a three-year cadence where the automatic adjustment mechanism applies for two consecutive years annually, with the third year requiring a general rate case.

Reduces notice requirements for changes to approved automatic adjustment mechanisms from 45 days to 30 days for tariff filings.

Grants the Public Utilities Commission broad discretion to waive or exempt water carriers from any requirements of the Hawaii Water Carrier Act if determined to be unjust, unreasonable, or not in the public interest.