PUC Annual ReportâFiscal Year 2011-12 - Public Utilities Commission
PUC Annual ReportâFiscal Year 2011-12 - Public Utilities Commission
PUC Annual ReportâFiscal Year 2011-12 - Public Utilities Commission
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<strong>Public</strong> <strong>Utilities</strong> <strong>Commission</strong> <strong>Annual</strong> Report <strong>2011</strong>-<strong>12</strong><br />
State of Hawaii Page 56<br />
Rates and Revenue<br />
Revenue, Sales, and Rates for Electricity Utility Companies<br />
Electric utility rates are the sum of various components, all of which are analyzed<br />
and approved by the <strong>Commission</strong>. Because conservation, energy efficiency and<br />
customer-sited renewable generation measures contribute to falling sales for the utility<br />
but are promoted by Hawaii’s clean energy policies and laws, the <strong>Commission</strong> approved<br />
the decoupling of utility sales from revenue or profit. Decoupling is intended to remove<br />
the disincentive for the HECO companies to aggressively pursue Hawaii’s clean energy<br />
objectives. The Final Decision and Order issued in August 2010 included a sales<br />
decoupling component and a revenue adjustment mechanism, which compensates the<br />
HECO Companies for increases in utility costs and infrastructure investment between<br />
rate cases.<br />
Table <strong>12</strong> and the following graphs (Figure 11a-f) break down the residential rates<br />
for each electric utility by island. Tables 13-16 show the revenue, sales, and average<br />
retail price for each rate class. Figure <strong>12</strong>a-d illustrates the breakdown of the revenue<br />
received by the electric utilities.
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