New PEG Study

The Hawaiian Electric companies submitted their initial comprehensive proposal for a new performance-based regulation (“PBR”) framework on August 14th. PBR proposals were requested from all parties in Phase 2 of the Hawaii Public Service Commission’s generic PBR proceeding. The Commission has mandated a multiyear rate plan approach to PBR that includes a revenue adjustment index. The index proposed by HECO is based on a new study by PEG that is entitled Designing Revenue Adjustment Mechanisms for the Hawaiian Electric Companies. Several workshops have been scheduled to discuss the alternative proposals.