HECO's First Annual Revenue Decoupling Mechanism Filing, March ...

Hawaii Administrative Rules, Title 6, Chapter 61. The proposed tariff revision is in accordancewith the Final Decoupling Order, the Final Decision and Order filed December 29, 2010 inDocket No. 2008-0083 (Hawaiian Electric's 2009 test year rate case), and the Order Approving2009 Final Rates.IVHawaiian Electric's latest available balance sheet and income statement for the twelvemonths ending December 31, 2010, were filed with the Commission on February 22, 2011, andare incorporated by reference pursuant to Rule 6-61-76 ofthe Commission's Rules of Practiceand Procedure, Title 6, Chapter 61, HAR.VBy Order Initiating Investigation ("Opening Order"), filed October 24, 2008, theCommission opened the decoupling proceeding in Docket No. 2008-0274 to examineimplementing a decoupling mechanism for the Hawaiian Electric Companies^ that would modifythe traditional model of ratemaking for the Hawaiian Electric Companies by separating theHawaiian Electric Companies' revenues and profits from electricity sales. This proceeding arosefrom the Energy Agreement among the State of Hawaii, Division of Consumer Advocacy oftheDepartment of Commerce and Consumer Affairs, and the Hawaiian Electric Companies("Energy Agreement"), which the Governor ofthe State of Hawaii, the Department of Business,Economic Development, and Tourism ("DBEDT"), the Hawaiian Electric Companies and theDivision of Consumer Advocacy ofthe Department of Commerce and Consumer Affairs("Consumer Advocate") executed on October 20, 2008. The Energy Agreement resulted from^ The "Hawaiian Electric Companies" include Hawaiian Electric, Hawaii Electric Light Company, Inc. {"HELCO")and Maui Electric Company, Limited ("MECO").-3-