SB 2487 Hawaii Senate · 2026 Regular Session

RELATING TO THE PUBLIC UTILITIES COMMISSION.

Summary

Requires the Public Utilities Commission to establish performance-based incentives, including revenue adjustment mechanisms, cost control mechanisms, and reward and penalty mechanisms on or before 1/1/2027. Clarifies that the Public Utilities Commission is authorized to adopt alternative ratemaking procedures to establish electric utility rates and performance-based incentives. (CD1)

Bill status signed all 5 stages cleared

Introduction

Jan 2026

Committee Review

May 2026

Senate Passage

May 2026

House Passage

May 2026

Signed into Law

Jun 2026

Introduced Jan 22, 2026 Signed Jun 5, 2026

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What changed between versions

SB2487_HD1 → SB2487_SD1 · 5 edits

MODERATE

This bill updates the Hawaii Ratepayer Protection Act to prevent the Public Utilities Commission from reverting to traditional cost-based rate setting. It clarifies that 'performance-based incentives' include penalties and rewards, mandates the use of historical cost trends instead of future projections, and requires the commission to consider specific customer-centric factors like affordability and reliability when setting rates.

Scope change

The bill expands the scope of what constitutes 'performance-based incentives' to explicitly include penalties and rewards, and broadens the commission's authority to use alternative ratemaking procedures if necessary to maintain a performance-based model.

REQUIREMENT

Added a requirement for the commission to apply a presumption in favor of using historical cost trends and external indices rather than future cost projections when resetting utility revenues.

Updated the statutory list of factors the commission must consider when reviewing utility performance to include affordability, customer engagement, accessibility of system information, and renewable energy integration.

Confirmed that the commission may adopt alternative ratemaking procedures to establish performance-based rates, overriding traditional cost-based methods if needed.

DEFINITION

Expanded the definition of 'performance-based incentives' to explicitly include revenue adjustment mechanisms, cost control mechanisms, rewards for superior performance, and penalties for subpar performance.

TIMELINE

Changed the deadline for establishing performance-based incentives from January 1, 2020, to January 1, 2027.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

May 6, 2026

Lower · Passed

Passed Final Reading as amended in CD 1 with none voting aye with reservations; none voting no (0) and none excused (0).

lower

May 6, 2026

Upper · Passed

Passed Final Reading, as amended (CD 1). Ayes, 25; Aye(s) with reservations: none . 0 No(es): none. 0 Excused: none.

upper

May 1, 2026

Lower · Passed

Reported from Conference Committee (Conf Com. Rep. No. 184-26) as amended in (CD 1).

lower

May 1, 2026

Introduced

48 Hrs. Notice (as amended CD 1) 05-06-26.

upper

May 1, 2026

Upper · Passed

Reported from Conference Committee as amended CD 1 (Conf. Com. Rep. No. 184-26).

upper

May 1, 2026

Lower · Passed

The 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.

lower

May 1, 2026

Upper · Passed

The 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.

upper

Apr 30, 2026

Upper · Passed

Conference committee meeting to reconvene on 05-01-26 2:30PM; Conference Room 224.

upper

Apr 29, 2026

Upper · Passed

Conference committee meeting to reconvene on 04-30-26 2:40PM; Conference Room 224.

upper

Apr 28, 2026

Upper · Passed

Conference committee meeting to reconvene on 04-29-26 2:40PM; CR 224.

upper

Apr 27, 2026

Upper · Passed

Conference committee meeting to reconvene on 04-28-26 2:40PM; Conference Room 224.

upper

Apr 24, 2026

Upper · Passed

Conference committee meeting to reconvene on 04-27-26 2:40PM; CR 224.

upper

Apr 23, 2026

Upper · Passed

Conference committee meeting scheduled for 04-24-26 3:30PM; Conference Room 224.

upper

Apr 20, 2026

Committee

Re-referred to EEP, CPC, FIN, referral sheet 30

lower

Apr 16, 2026

Amended

Senate disagrees with House amendments.

upper

Apr 16, 2026

Introduced

Received from House (Hse. Com. No. 665).

upper

Apr 14, 2026

Lower · Passed

Passed Third Reading with Representative(s) Shimizu voting aye with reservations; none voting no (0) and Representative(s) Quinlan excused (1). Transmitted to Senate.

lower

Apr 7, 2026

Lower · Passed

The 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.

lower

Mar 24, 2026

Committee

Reported from EEP (Stand. Com. Rep. No. 1379-26) as amended in HD 1, recommending passage on Second Reading and referral to CPC.

lower

Mar 19, 2026

Lower · Passed

The 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.

lower

Mar 10, 2026

Committee

Referred to EEP, CPC, referral sheet 16

lower

Mar 6, 2026

Introduced

Received from Senate (Sen. Com. No. 56) in amended form (SD 1).

lower

Mar 6, 2026

Upper · Passed

Report Adopted; Passed Third Reading. Ayes, 24; Aye(s) with reservations: none. Noes, 0 (none). Excused, 1 (Senator(s) Ihara). Transmitted to House.

upper

Mar 3, 2026

Upper · Passed

The 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.

upper

Feb 27, 2026

Upper · Passed

The committee(s) on WAM will hold a public decision making on 03-03-26 10:17AM; Conference Room 211 & Videoconference.

upper

Feb 13, 2026

Upper · Passed

Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM.

upper

Feb 13, 2026

Committee

Reported from CPN/EIG (Stand. Com. Rep. No. 2258) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.

upper

Feb 4, 2026

Upper · Passed

The 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.

upper

Feb 4, 2026

Upper · Passed

The 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.

upper

Jan 30, 2026

Upper · Passed

The committee(s) on CPN/EIG has scheduled a public hearing on 02-04-26 9:30AM; Conference Room 229 & Videoconference.

upper

Jan 28, 2026

Committee

Referred to CPN/EIG, WAM.

upper

Jan 22, 2026

Introduced

Introduced.

upper

5 primary · 3 co-sponsors