David Y. Ige

HONOLULU – In a 3-0 decision, the Hawaii Public Utilities Commission today issued its
Final Decision and Order approving a rate decrease for Hawaiian Electric Company, Inc.

This rate decrease reflects the impacts of the recently enacted federal “Tax Cuts and
Jobs Act,” as well as several downward adjustments made by the Commission earlier in
its Interim Decision and Order, issued December 15, 2017. As a result, what had initially
been proposed by Hawaiian Electric as an approximately $106,383,000 increase in
revenues has been reduced to a revenue decrease of approximately $603,000.

In reaching its decision, the Commission noted that Hawaiian Electric and the Department
of Commerce and Consumer Affairs, Division of Consumer Advocacy had reached a
settlement agreement which addressed all of the outstanding issues remaining in this
proceeding.

In addition, the Commission approved a modification to Hawaiian Electric’s automatic fuel
cost surcharge to include a risk sharing element, to more fairly share the risk of fuel price
increases and decreases between Hawaiian Electric and its customers. The fuel cost risk
sharing includes a cap of $2.5 million per year, so Hawaiian Electric is protected from
significant unanticipated increases in fuel prices, while customers will still enjoy most of
the benefits of fuel price decreases.

For a full description of the Commission’s rulings, please see the complete Final Decision
and Order, filed June 22, 2018, in Docket No. 2016-0328. The Final Decision and Order,
as well as links to the docket record may be found on the Commission’s website at:
https://puc.hawaii.gov/.

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