Hawaii's new fuel price performance incentive gives HECO 'skin in the game'
Hawaii regulators took a step toward performance incentives for its dominant electric utility, but transitioning to true performance-based regulation (PBR) will be contentious, judging from the stakeholder response. The cost of importing expensive fuel oil for power generation in the state has led to many debates over the best way to align utility incentives with customer interests — such as using a sharing mechanism to split fuel price volatility risks between the utility's shareholders and its ratepayers. [node:read-more:link]