Bill Text: HI HCR112 | 2017 | Regular Session | Amended
Bill Title: Requesting The Public Utilities Commission To Establish Performance Based Revenue Mechanisms That Directly Tie An Electric Utility's Revenues To The Utility's Achievement On Performance Metrics.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-03-29 - Report adopted. referred to the committee(s) on FIN as amended in HD 1 with none voting aye with reservations; none voting no (0) and Representative(s) Aquino, Oshiro, Say, Thielen excused (4). [HCR112 Detail]
Download: Hawaii-2017-HCR112-Amended.html
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HOUSE OF REPRESENTATIVES |
H.C.R. NO. |
112 |
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TWENTY-NINTH LEGISLATURE, 2017 |
H.D. 1 |
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STATE OF HAWAII |
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HOUSE CONCURRENT
RESOLUTION
REQUESTING THE PUBLIC UTILITIES COMMISSION TO ESTABLISH PERFORMANCE BASED REVENUE MECHANISMS THAT DIRECTLY TIE AN ELECTRIC UTILITY'S REVENUES TO THE UTILITY'S ACHIEVEMENT ON PERFORMANCE METRICS.
WHEREAS, the prevailing business model used by most electric utilities in the State is not aligned with customer interests and the State's public policy goals, because it rewards utilities for increasing capital expenditures, irrespective of utility performance, with the result that the more a utility spends, the more a utility earns, resulting in higher costs for consumers; and
WHEREAS, it is critical to realign the prevailing electric utility business model with customer interests to ensure that Hawaii's residents and businesses do not suffer economic and environmental harm from the State's energy systems; and
WHEREAS, realignment of the business model is also critical to ensure the ongoing viability of electric utilities, which face an increasing need to rapidly adapt business models and strategies to enable new innovations and customer choices; and
WHEREAS, in particular, the prevailing electric utility business model should be updated with a feature in which the reasonableness of an electric utility's rates and revenues are solely based upon the utility's performance on a set of measurable outcomes; and
WHEREAS,
in other words, the prevailing electric utility business model, in which
revenues are based upon costs, should be replaced with a business model in
which revenues are based upon performance; now, therefore,
BE IT RESOLVED by the House of Representatives of the Twenty-ninth
Legislature of the State of Hawaii, Regular Session of 2017, the Senate
concurring, that the Public Utilities Commission is requested to establish
performance incentive and penalty mechanisms that directly tie an electric
utility's revenues to the utility's achievement on performance metrics; and
BE IT FURTHER RESOLVED that the Public Utilities Commission is further requested to submit a status report on the establishment of the performance incentive and penalty mechanisms, and any proposed legislation, to the Legislature not later than twenty days prior to the convening of the Regular Session of 2018; and
BE IT FURTHER RESOLVED that a certified copy of this Concurrent Resolution be transmitted to the Chairperson of the Public Utilities Commission.
Public Utilities Commission; Performance Incentive
