HI SB2694

Authorizes the Public Utilities Commission to establish automatic adjustment mechanisms for water carriers to address inflation, regulatory lag, and other economic factors, either on its own initiative or upon carrier application

Requires the PUC to establish a water carrier inflationary cost index automatic adjustment mechanism for property carriers by July 1, 2026, reflecting annual percentage changes in wharfage rates set by the Department of Transportation's harbors division

Implements a three-year rate adjustment cycle where automatic adjustments apply in years one and two, with carriers required to submit a full rate application in year three subject to standard review requirements

Exempts customers eligible for preferential agricultural water rates from any automatic adjustment mechanism

Takes effect July 1, 2050, and sunsets July 1, 2033, with the PUC authorized to waive or exempt water carriers from any requirements under the Hawaii Water Carrier Act