SB 2487HawaiiProcess complete

Hawaii requires rules tying electric utility revenue to performance

Hawaii’s Public Utilities Commission must set financial rewards, penalties, and cost controls for electric utilities by January 1, 2027, excluding member-owned cooperatives.

What it does

Hawaii’s Public Utilities Commission must link electric utility revenue to performance by January 1, 2027, using cost controls, rewards, and penalties. Member-owned electric cooperatives are exempt.

The Public Utilities Commission may use different procedures to set electric rates, despite contrary laws. Rates must still depend on utility performance, and member-owned electric cooperatives are exempt.

Argument forTying utility revenue to performance could encourage better electric service by rewarding results rather than the amount utilities invest.

Argument againstAllowing different rate-setting procedures could make it harder for customers to predict how regulators will decide their electricity rates.

More detail

The Public Utilities Commission must establish financial incentives that adjust utility revenue, control costs, and reward or penalize performance. The requirements cover electric utility rates. Member-owned cooperative electric utilities are exempt. The incentives must tie utility revenue to performance and break the direct link between allowed revenue and investment levels. The law takes effect upon approval. The commission must establish these incentives on or before January 1, 2027.

The Public Utilities Commission may adopt different procedures for setting electric rates and performance incentives through a commission order. This authority covers electric utilities other than member-owned cooperatives. Rates must come from a model that ties utility revenue to performance. The commission may use these procedures despite contrary laws, including the usual rate-setting procedures. This authority takes effect upon the law’s approval.

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Where it stands

IntroducedJan 22
Passed SenateMar 6
Passed HouseApr 14
To GovernorMay 8
Became LawJun 5

Looking ahead

No hearings or votes scheduled.

History

2026
1. Jun 5Act 093, 06/05/2026 (Gov. Msg. No. 1193).Latest
2. Jun 5Act 093, on 06/05/2026 (Gov. Msg. No. 1193).Became Law
3. May 8Received notice of passage on Final Reading in House (Hse. Com. No. 888).Minor
4. May 8Enrolled to Governor.To Governor
5. May 6Passed Final Reading, as amended (CD 1). Ayes, 25; Aye(s) with reservations: none . 0 No(es): none. 0 Excused: none.Major
  - Vote recorded Passed Final Reading as amended in CD 1. Result: pass.Lower
6. May 6Passed Final Reading as amended in CD 1 with none voting aye with reservations; none voting no (0) and none excused (0).Major
7. May 6Received notice of Final Reading (Sen. Com. No. 816).Minor
8. May 1The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. The votes of the Senate Conference Managers were as follows: 4 Aye(s): Senator(s) Keohokalole, Wakai, Inouye, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) McKelvey.Minor
  - Vote recorded The Conference Committee recommends that the measure be Passed, with Amendments. Result: pass.Lower
  - Vote recorded The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. Result: pass.Upper
9. May 1The Conference Committee recommends that the measure be Passed, with Amendments. The votes were as follows: 4 Ayes: Representative(s) Lowen, Matayoshi, Perruso, Matsumoto; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none.Minor
10. May 1Reported from Conference Committee as amended CD 1 (Conf. Com. Rep. No. 184-26).
11. May 148 Hrs. Notice (as amended CD 1) 05-06-26.
12. May 1Reported from Conference Committee (Conf Com. Rep. No. 184-26) as amended in (CD 1).
13. May 1Forty-eight (48) hours notice Wednesday, 05-06-26.
14. Apr 30Conference committee meeting to reconvene on 05-01-26 2:30PM; Conference Room 224.
15. Apr 29Conference committee meeting to reconvene on 04-30-26 2:40PM; Conference Room 224.
16. Apr 28Conference committee meeting to reconvene on 04-29-26 2:40PM; CR 224.
17. Apr 27Conference committee meeting to reconvene on 04-28-26 2:40PM; Conference Room 224.
18. Apr 24Conference committee meeting to reconvene on 04-27-26 2:40PM; CR 224.
19. Apr 23Senate Conferees Appointed: Keohokalole Chair; Wakai, Inouye Co-Chairs; McKelvey, Awa.
20. Apr 23Conference committee meeting scheduled for 04-24-26 3:30PM; Conference Room 224.
21. Apr 23Received notice of Senate conferees (Sen. Com. No. 740).Minor
22. Apr 20Re-referred to EEP, CPC, FIN, referral sheet 30Minor
23. Apr 20House Conferees Appointed: Lowen, Matayoshi, Perruso Co-Chairs; Matsumoto.
24. Apr 20Received notice of appointment of House conferees (Hse. Com. No. 787).Minor
25. Apr 16Received from House (Hse. Com. No. 665).Minor
26. Apr 16Senate disagrees with House amendments.Minor
27. Apr 16Received notice of disagreement (Sen. Com. No. 710).Minor
28. Apr 14Passed Third Reading with Representative(s) Shimizu voting aye with reservations; none voting no (0) and Representative(s) Quinlan excused (1). Transmitted to Senate.Passed House
  - Vote recorded Passed Third Reading. Result: pass.Lower
29. Apr 10Reported from CPC (Stand. Com. Rep. No. 2123-26), recommending passage on Third Reading.
30. Apr 7The committee on CPC recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 10 Ayes: Representative(s) Matayoshi, Grandinetti, Chun, Ilagan, Ichiyama, Iwamoto, Lowen, Marten, Tam, Pierick; Ayes with reservations: none; 1 Noes: Representative(s) Kong; and Excused: none.Minor
  - Vote recorded The committee on CPC recommend that the measure be PASSED, UNAMENDED. Result: pass.Lower
31. Apr 2Bill scheduled to be heard by CPC on Tuesday, 04-07-26 2:05PM in House conference room 329 VIA VIDEOCONFERENCE.
32. Mar 24Reported from EEP (Stand. Com. Rep. No. 1379-26) as amended in HD 1, recommending passage on Second Reading and referral to CPC.
  - Vote recorded Passed Second Reading as amended in HD 1 and referred to the committee(s) on CPC. Result: pass.Lower
33. Mar 24Passed Second Reading as amended in HD 1 and referred to the committee(s) on CPC with none voting aye with reservations; none voting no (0) and Representative(s) Garrett, Quinlan excused (2).Minor
34. Mar 19The committee on EEP recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 6 Ayes: Representative(s) Lowen, Perruso, Chun, Kahaloa, Kusch, Matsumoto; Ayes with reservations: none; Noes: none; and 1 Excused: Representative(s) Quinlan.Minor
  - Vote recorded The committee on EEP recommend that the measure be PASSED, WITH AMENDMENTS. Result: pass.Lower
35. Mar 16Bill scheduled to be heard by EEP on Thursday, 03-19-26 9:40AM in House conference room 325 VIA VIDEOCONFERENCE.
36. Mar 10Pass First ReadingMinor
37. Mar 10Referred to EEP, CPC, referral sheet 16Minor
38. Mar 6Report Adopted; Passed Third Reading. Ayes, 24; Aye(s) with reservations: none. Noes, 0 (none). Excused, 1 (Senator(s) Ihara). Transmitted to House.Passed Senate
  - Vote recorded Report Adopted; Passed Third Reading. Result: pass.Upper
39. Mar 6Received from Senate (Sen. Com. No. 56) in amended form (SD 1).Minor
40. Mar 5Reported from WAM (Stand. Com. Rep. No. 2861) with recommendation of passage on Third Reading.
41. Mar 5One Day Notice 03-06-26.
42. Mar 3The committee(s) on WAM recommend(s) that the measure be PASSED, UNAMENDED. The votes in WAM were as follows: 12 Aye(s): Senator(s) Dela Cruz, Moriwaki, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Richards, Wakai; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Fevella.Minor
  - Vote recorded The committee(s) on WAM recommend(s) that the measure be PASSED, UNAMENDED. Result: pass.Upper
43. Feb 27The committee(s) on WAM will hold a public decision making on 03-03-26 10:17AM; Conference Room 211 & Videoconference.
44. Feb 13Reported from CPN/EIG (Stand. Com. Rep. No. 2258) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.
45. Feb 13Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM.Minor
46. Feb 4The committee(s) on EIG recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in EIG were as follows: 5 Aye(s): Senator(s) Wakai, Chang, DeCoite, Richards, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.Minor
  - Vote recorded The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS. Result: pass.Upper
  - Vote recorded The committee(s) on EIG recommend(s) that the measure be PASSED, WITH AMENDMENTS. Result: pass.Upper
47. Feb 4The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in CPN were as follows: 5 Aye(s): Senator(s) Keohokalole, Fukunaga, Lamosao, McKelvey, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.Minor
48. Jan 30The committee(s) on CPN/EIG has scheduled a public hearing on 02-04-26 9:30AM; Conference Room 229 & Videoconference.
49. Jan 28Referred to CPN/EIG, WAM.Minor
50. Jan 22Introduced.Minor
51. Jan 22Passed First Reading.Introduced

Environment & EnergyConsumer Protection

Issue with this bill?

SB 2487HawaiiProcess complete

Hawaii requires rules tying electric utility revenue to performance

Hawaii’s Public Utilities Commission must set financial rewards, penalties, and cost controls for electric utilities by January 1, 2027, excluding member-owned cooperatives.

What it does

Argument forTying utility revenue to performance could encourage better electric service by rewarding results rather than the amount utilities invest.

Argument againstAllowing different rate-setting procedures could make it harder for customers to predict how regulators will decide their electricity rates.

More detail

Where do you stand?

Tell your reps

Take a position to see your representatives and ways to contact them.

More on this bill

Where it stands

IntroducedJan 22
Passed SenateMar 6
Passed HouseApr 14
To GovernorMay 8
Became LawJun 5

Looking ahead

No hearings or votes scheduled.

History

2026
1. Jun 5Act 093, 06/05/2026 (Gov. Msg. No. 1193).Latest
2. Jun 5Act 093, on 06/05/2026 (Gov. Msg. No. 1193).Became Law
3. May 8Received notice of passage on Final Reading in House (Hse. Com. No. 888).Minor
4. May 8Enrolled to Governor.To Governor
5. May 6Passed Final Reading, as amended (CD 1). Ayes, 25; Aye(s) with reservations: none . 0 No(es): none. 0 Excused: none.Major
  - Vote recorded Passed Final Reading as amended in CD 1. Result: pass.Lower
6. May 6Passed Final Reading as amended in CD 1 with none voting aye with reservations; none voting no (0) and none excused (0).Major
7. May 6Received notice of Final Reading (Sen. Com. No. 816).Minor
8. May 1The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. The votes of the Senate Conference Managers were as follows: 4 Aye(s): Senator(s) Keohokalole, Wakai, Inouye, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) McKelvey.Minor
  - Vote recorded The Conference Committee recommends that the measure be Passed, with Amendments. Result: pass.Lower
  - Vote recorded The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. Result: pass.Upper
9. May 1The Conference Committee recommends that the measure be Passed, with Amendments. The votes were as follows: 4 Ayes: Representative(s) Lowen, Matayoshi, Perruso, Matsumoto; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none.Minor
10. May 1Reported from Conference Committee as amended CD 1 (Conf. Com. Rep. No. 184-26).
11. May 148 Hrs. Notice (as amended CD 1) 05-06-26.
12. May 1Reported from Conference Committee (Conf Com. Rep. No. 184-26) as amended in (CD 1).
13. May 1Forty-eight (48) hours notice Wednesday, 05-06-26.
14. Apr 30Conference committee meeting to reconvene on 05-01-26 2:30PM; Conference Room 224.
15. Apr 29Conference committee meeting to reconvene on 04-30-26 2:40PM; Conference Room 224.
16. Apr 28Conference committee meeting to reconvene on 04-29-26 2:40PM; CR 224.
17. Apr 27Conference committee meeting to reconvene on 04-28-26 2:40PM; Conference Room 224.
18. Apr 24Conference committee meeting to reconvene on 04-27-26 2:40PM; CR 224.
19. Apr 23Senate Conferees Appointed: Keohokalole Chair; Wakai, Inouye Co-Chairs; McKelvey, Awa.
20. Apr 23Conference committee meeting scheduled for 04-24-26 3:30PM; Conference Room 224.
21. Apr 23Received notice of Senate conferees (Sen. Com. No. 740).Minor
22. Apr 20Re-referred to EEP, CPC, FIN, referral sheet 30Minor
23. Apr 20House Conferees Appointed: Lowen, Matayoshi, Perruso Co-Chairs; Matsumoto.
24. Apr 20Received notice of appointment of House conferees (Hse. Com. No. 787).Minor
25. Apr 16Received from House (Hse. Com. No. 665).Minor
26. Apr 16Senate disagrees with House amendments.Minor
27. Apr 16Received notice of disagreement (Sen. Com. No. 710).Minor
28. Apr 14Passed Third Reading with Representative(s) Shimizu voting aye with reservations; none voting no (0) and Representative(s) Quinlan excused (1). Transmitted to Senate.Passed House
  - Vote recorded Passed Third Reading. Result: pass.Lower
29. Apr 10Reported from CPC (Stand. Com. Rep. No. 2123-26), recommending passage on Third Reading.
30. Apr 7The committee on CPC recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 10 Ayes: Representative(s) Matayoshi, Grandinetti, Chun, Ilagan, Ichiyama, Iwamoto, Lowen, Marten, Tam, Pierick; Ayes with reservations: none; 1 Noes: Representative(s) Kong; and Excused: none.Minor
  - Vote recorded The committee on CPC recommend that the measure be PASSED, UNAMENDED. Result: pass.Lower
31. Apr 2Bill scheduled to be heard by CPC on Tuesday, 04-07-26 2:05PM in House conference room 329 VIA VIDEOCONFERENCE.
32. Mar 24Reported from EEP (Stand. Com. Rep. No. 1379-26) as amended in HD 1, recommending passage on Second Reading and referral to CPC.
  - Vote recorded Passed Second Reading as amended in HD 1 and referred to the committee(s) on CPC. Result: pass.Lower
33. Mar 24Passed Second Reading as amended in HD 1 and referred to the committee(s) on CPC with none voting aye with reservations; none voting no (0) and Representative(s) Garrett, Quinlan excused (2).Minor
34. Mar 19The committee on EEP recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 6 Ayes: Representative(s) Lowen, Perruso, Chun, Kahaloa, Kusch, Matsumoto; Ayes with reservations: none; Noes: none; and 1 Excused: Representative(s) Quinlan.Minor
  - Vote recorded The committee on EEP recommend that the measure be PASSED, WITH AMENDMENTS. Result: pass.Lower
35. Mar 16Bill scheduled to be heard by EEP on Thursday, 03-19-26 9:40AM in House conference room 325 VIA VIDEOCONFERENCE.
36. Mar 10Pass First ReadingMinor
37. Mar 10Referred to EEP, CPC, referral sheet 16Minor
38. Mar 6Report Adopted; Passed Third Reading. Ayes, 24; Aye(s) with reservations: none. Noes, 0 (none). Excused, 1 (Senator(s) Ihara). Transmitted to House.Passed Senate
  - Vote recorded Report Adopted; Passed Third Reading. Result: pass.Upper
39. Mar 6Received from Senate (Sen. Com. No. 56) in amended form (SD 1).Minor
40. Mar 5Reported from WAM (Stand. Com. Rep. No. 2861) with recommendation of passage on Third Reading.
41. Mar 5One Day Notice 03-06-26.
42. Mar 3The committee(s) on WAM recommend(s) that the measure be PASSED, UNAMENDED. The votes in WAM were as follows: 12 Aye(s): Senator(s) Dela Cruz, Moriwaki, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Richards, Wakai; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Fevella.Minor
  - Vote recorded The committee(s) on WAM recommend(s) that the measure be PASSED, UNAMENDED. Result: pass.Upper
43. Feb 27The committee(s) on WAM will hold a public decision making on 03-03-26 10:17AM; Conference Room 211 & Videoconference.
44. Feb 13Reported from CPN/EIG (Stand. Com. Rep. No. 2258) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.
45. Feb 13Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM.Minor
46. Feb 4The committee(s) on EIG recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in EIG were as follows: 5 Aye(s): Senator(s) Wakai, Chang, DeCoite, Richards, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.Minor
  - Vote recorded The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS. Result: pass.Upper
  - Vote recorded The committee(s) on EIG recommend(s) that the measure be PASSED, WITH AMENDMENTS. Result: pass.Upper
47. Feb 4The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in CPN were as follows: 5 Aye(s): Senator(s) Keohokalole, Fukunaga, Lamosao, McKelvey, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.Minor
48. Jan 30The committee(s) on CPN/EIG has scheduled a public hearing on 02-04-26 9:30AM; Conference Room 229 & Videoconference.
49. Jan 28Referred to CPN/EIG, WAM.Minor
50. Jan 22Introduced.Minor
51. Jan 22Passed First Reading.Introduced

Environment & EnergyConsumer Protection

Issue with this bill?

What it does

Where do you stand?

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Tell your reps

More on this bill

Where it stands

Looking ahead

History

What it does

Where do you stand?

Choose your position

Tell your reps

More on this bill

Where it stands

Looking ahead

History