HONOLULU (KHON2) — State lawmakers grilled Hawaiian Electric and the Hawaii Public Utilities Commission (PUC) on Monday over rising electricity costs and what they called unreliable service, during a hearing examining the state’s performance-based regulation system.
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The system, known as PBR, was implemented in 2021 to encourage utilities to improve performance while controlling costs. But lawmakers expressed concern that the policy has yet to deliver meaningful benefits to consumers.
About 80,000 Hawaii residents are considered “energy burdened,” meaning they spend a disproportionate share of their income on electricity, according to lawmakers. Nearly 13,000 customers were disconnected in 2023 for nonpayment.
“Undoubtedly the rates are going to go up and we’re getting poor service,” said Sen. Glenn Wakai, (D), the Senate Majority Floor Leader. “How are you going to reconcile this for the public?”
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PUC Chairman Leo Asuncion responded that the commission has opened a docket specifically to review the disconnection process used by Hawaiian Electric and Kauai Island Utility Cooperative (KIUC).
Hawaiian Electric Vice President Jim Kelly testified that the utility posted a $1.2 billion loss last year. “That was our profit—$1.2 billion loss,” he said. “I just wanted to have that correct for the record.”
Wakai pointed out that part of the loss was related to wildfires, which Kelly confirmed. “We’re talking about rates—where the public is paying for power, and it’s always disrupted—and it’s three times the national average,” Wakai added.
During the hearing, lawmakers also revealed the existence of a whistleblower complaint alleging internal staff and morale issues at the PUC, which they said could be hampering the commission’s ability to effectively regulate key industries.
Asuncion denied the allegations raised in the complaint.
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The hearing marked the latest in a series of state-level efforts to scrutinize Hawaii’s energy policies amid mounting public frustration over costs and service reliability.
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