Investigation to Reexamine the Existing Decoupling Mechanisms for the Hawaiian Electric Companies
Synapse is assisting the Hawaii Division of Consumer Advocacy in an investigation to reexamine the existing decoupling mechanisms for the Hawaiian Electric Companies (Docket 2013-0141). The Hawaii Public Utilities Commission opened this investigation to determine whether the existing decoupling mechanisms, including both the Revenue Balancing Account (RBA) and the Revenue Adjustment Mechanism (RAM), are effectively serving their intended purposes, are fair to the HECO Companies and ratepayers, and are in the public interest. Schedule A of this docket addressed interest rates, tax deferrals, risk sharing mechanisms, baseline projects in RAM, and performance metrics. Schedule B of this docket will address issues concerning the RAM, particularly related to the incentives that the RAM provides or fails to provide, the fair allocation of risk, and ways to increase the efficiency of ratemaking. Synapse is taking a lead role in reviewing and commenting on the development of HECO’s performance metrics associated with Schedule A, and is leading the development of the Consumer Advocate’s statements of position regarding performance incentives in Schedule B, including analysis of how such incentives might interact with the decoupling mechanism.