HI SB2487

Amends Hawaii's electric utility ratemaking law to strengthen performance-based regulation established under the 2018 Hawaii Ratepayer Protection Act, requiring rates be tied to utility performance rather than investment levels.

Clarifies that "performance-based incentives" include revenue adjustment mechanisms, cost control mechanisms, rewards for superior performance, and penalties for subpar performance.

Authorizes the Public Utilities Commission to adopt alternative ratemaking procedures to establish electric utility rates, departing from traditional cost-of-service models.

Requires the Commission to presume in favor of using historical cost trends and external indices when resetting utility revenues, rather than forward-looking cost projections that could inflate rates.

Effective date of July 1, 2050.