top of page

Hawaii Electric rates changing now, but what about the future?

KITV

Paul Drewes

June 24, 2025

HONOLULU (Island News) -- Hawaiian Electric said because of lower fuel costs, a typical household will now see about a $3 reduction in its monthly bill.


But future rate increases for the utility company were the focus at the State Capitol.


Like a report card for students, HECO's income is partly based on how well it does on certain metrics.


And according to some lawmakers the state's largest utility has a failing grade.


"From Oahu to the Big Island we're seeing spotty service, and the amount the system is down is increased almost threefold. We are paying three times the national average for electricity bills," said Senator Glenn Wakai.


In 2018, lawmakers passed legislation that allowed rates to be set based on performance based regulation known as PBR.


Which means if the company meets certain goals, for example: adding additional renewable products, or reducing power outages, HECO may get to keep more money.


"PBR is like a toolbox and the performance mechanisms are your tools. Hawaii has the most tools in its toolbox than anywhere else," said PUC supervising Attorney Mark Kaetsu.


Hawaiian Electric will soon enter the fifth and final year of its current PBR plan and the Public Utility Commission is already looking at rebasing rates for the next PBR plan.


But some lawmakers worry that could mean higher rates without better service.


"When the utility can come in at anytime and ask for more... what are we asking from them in return? We should be asking for things like prove you are saving money and running like a business," stated Senator Jarrett Keohokalole.


Lawmakers are concerned the utility is dictating what it wants, rather than the Public Utility Commission telling HECO what is best for residents. Which is keeping rates from rising.


"I worry that we are setting ourselves up for the largest cost increase to consumers in history," said Senator Chris Lee.


Rates were not the only issue brought up at the meeting, so were whistleblower complaints about the PUC. Those claimed a certain manager has created a toxic environment, and called for leadership change.


Now the PUC will have to deal with more than just utility rates in the future.


"It is something mentioned in this letter that we believe for us through human resources to commence an investigation," said DCCA Director Nadine Ando.

bottom of page