State seeking to improve how it regulates HECO

State regulators are seeking public participation in an effort to better align the interests of Hawaii’s biggest electric utility and its customers.

The state Public Utilities Commission announced Wednesday that it has opened a two-phase proceeding to assess and improve regulation of Hawaiian Electric Cos. with a focus on performance-based mechanisms.

Criteria in such a regulatory framework would include increased renewable energy, lower costs and improved customer service as the utility serving Oahu, Hawaii island and Maui County shifts from its old model of centralized electricity production from fossil fuels to more and more renewable sources harnessed by other companies and its customers.

“Performance-based regulation is a set of tools that can spark innovation, reduce costs, and enable utilities to better serve their customers,” PUC Chairman Randy Iwase said in a statement. “It is not a one-size-fits-all approach. It should be carefully tailored to the specific needs of Hawaii.”

The PUC plans to hold workshops and technical conferences and take written comments to gather input from stakeholders. Part of the proceeding will evaluate the current regulatory framework and target areas for improvement. A second phase will explore new performance-based regulation.

Materials in the proceeding will be filed and available online under Docket No. 2018-0088. More information can be found at puc.hawaii.gov.