Hawaii legislation · 2026 Regular Session
Hawaii SB2487: Relating to the Public Utilities Commission.
Status: Signed into law, June 5, 2026
Clarifies that, for electric utilities, "performance-based incentives" include revenue adjustment mechanisms, cost control mechanisms, rewards for superior performance, and penalties for subpar performance. Confirms that the Public Utilities Commission may adopt alternative ratemaking procedures to establish electric utility rates and performance-based incentives. Requires the Commission to apply a presumption in favor of considering historical cost trends and external indices that reflect incentives to control costs if the Commission resets an electric utility's allowed revenues based on consideration of the utility's costs.
What the bill says
A bill for an act relating to the public utilities commission.
From the enrolled text:
A BILL FOR AN ACT RELATING TO THE PUBLIC UTILITIES COMMISSION. SECTION 1. This Act shall be known and may be cited as the "Hawaii Ratepayer Protection Act of 2026". SECTION 2. The legislature finds that, in 2018, the legislature enacted the Hawaii Ratepayer Protection Act to provide proactive protections to the State's electric utility customers. Act 5, Session Laws of Hawaii 2018 (Act 5), provided that electric utility rates would be considered just and reasonable only if they are derived from a performance-based model for determining utility revenues. Act 5 emphasized that the State should adjust electric utilities' interests to better align with customers' interests. The legislature found that there was "extraordinary urgency" for this realignment. Act 5 directed the public utilities commission to establish a performance-based model for utility regulation and ratemaking based on performance incentives that "directly tie an electric [utility's] revenues to that utility's achievement on performance metrics and break the direct link between allowed 2026-2428 SB2487 GDI SMA-l.docx iiiiiiiiBiiiiHMiiimiini Page S.B. NO. C.D. revenues and investment levels." The intent of this performance-based model was to depart from the traditional cost-of-service model that rewards utilities for increasing the utility's capital expenditures and bases allowed revenues on the value of the rate base, irrespective of the utility's performance. The legislature recognized that the traditional model misaligned the …
Sponsors
- Jarrett Keohokalole (D, 24) · primary sponsor
- Stanley Chang (D, 9)
- Kurt Fevella (R, 20)
- Angus McKelvey (D, 6)
- Sharon Moriwaki (D, 12)
- Troy Hashimoto (D, 5)
- Joy San Buenaventura (D, 2)
- Glenn Wakai (D, 15)
Latest actions
- : Act 093, on 06/05/2026 (Gov. Msg. No. 1193).
- : Act 093, 06/05/2026 (Gov. Msg. No. 1193).
- : Enrolled to Governor.
- : Received notice of passage on Final Reading in House (Hse. Com. No. 888).
- : Received notice of Final Reading (Sen. Com. No. 816).
- : Passed Final Reading as amended in CD 1 with none voting aye with reservations; none voting no (0) and none excused (0).
- : Passed Final Reading, as amended (CD 1). Ayes, 25; Aye(s) with reservations: none . 0 No(es): none. 0 Excused: none.
- : Forty-eight (48) hours notice Wednesday, 05-06-26.
- : Reported from Conference Committee (Conf Com. Rep. No. 184-26) as amended in (CD 1).
- : 48 Hrs. Notice (as amended CD 1) 05-06-26.
Votes
- Passed Final Reading, as amended (CD 1) (May 6, 2026): 25 yea, 0 nay, passed
- Final Reading as amended in CD 1 with none voting aye with reservations; none voting no (0) and none excused (0) (May 6, 2026): 51 yea, 0 nay, passed
- none. (May 1, 2026): 4 yea, 0 nay, passed
- Conference Committee Vote (May 1, 2026): 4 yea, 0 nay, passed
- Third Reading with Representative(s) Shimizu voting aye with reservations; none voting no (0) and Representative(s) Quinlan excused (1) (April 14, 2026): 50 yea, 0 nay, passed
- CPC: recommend that the measure be PASSED, UNAMENDED (April 7, 2026): 10 yea, 1 nay, passed
Subjects: Report, The Public Utilities Commission, Penalties
Common questions
- What is SB2487?
- SB2487 is a bill in the Hawaii Legislature (2026 Regular Session): Relating to the Public Utilities Commission.
- What does SB2487 do?
- In its own words: A bill for an act relating to the public utilities commission.
- What is the status of SB2487?
- Signed into law as of June 5, 2026. Latest action: Act 093, on 06/05/2026 (Gov. Msg. No. 1193). (June 5, 2026).
- Who sponsored SB2487?
- Jarrett Keohokalole (D, 24), with 7 co-sponsors.
- Where is the official record for SB2487?
- On the Hawaii Legislature website: https://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=SB&billnumber=2487&year=2026
Source: official Hawaii record. Tracked by Delilah, AI for legislation across all 50 states and Congress.