Process Overview

Guiding Principles, Goals, and Outcomes

In Phase 1 of the PBR Framework, the Commission established three guiding principles to inform the development of the PBR Framework: a customer-centric approach, administrative efficiency, and utility financial integrity. To serve these principles, the Commission adopted three overarching regulatory goals with 12 priority outcomes, classified as either a traditional or emergent outcome, for designing the PBR Framework. Hawaiian Electric tracks several reported metrics for each of these priority outcomes.

Goal Priority Outcome
Enhance Customer Experience Traditional Affordability
Emergent Interconnection Experience
Customer Engagement
Improve Utility Performance Traditional Cost Control
Emergent DER Asset Effectiveness
Grid Investment Efficiency
Advance Societal Outcomes Traditional Capital Formation
Customer Equity
Emergent GHG Reduction
Electrification of Transportation

Phased Process

The Commission and parties utilized a phased process to establish, implement, and monitor the PBR Framework, which generally followed six steps. First, the Commission issued the Phase 1 Decision & Order, establishing the goals and outcomes for the PBR Framework. Second, the parties proposed mechanisms in the PBR Working Group for discussion and development. Third, parties formally briefed the Commission with written proposals for the PBR Framework. Fourth, the Commission issued the Phase 2 Decision & Order, establishing the final PBR Framework to govern Hawaiian Electric. Fifth, the parties collaborated in the PBR Working Group to finalize details and tariffs pursuant to the Commission’s decisions to implement the PBR Framework. Sixth, after the PBR Framework went into effect on June 1st, 2021, the Commission and parties have worked together to assess performance and adjust mechanisms within the PBR Framework as necessary and appropriate.

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Updated 7/2024