Hawaii PUC holds informational webinar on Act 258 liability cap rulemaking; solicits written input through June 15

The Hawaii Public Utilities Commission hosted a statewide informational webinar to explain the rulemaking process directed by Act 258 to consider a liability cap framework for electric utilities and to solicit public input.

Commissioner John E. Tamura opened the session and emphasized the PUC’s intent that the engagement be accessible and that community perspectives and lived experience will inform draft rules before formal rulemaking begins. Moderator Colin A. Dilliner (Pa'akai Communications) reviewed logistics, recording and the Q&A process.

Commissioner Colin Yost summarized the statute’s charge: “The legislature Act 258 directed the Hawaii Public Utilities Commission to initiate a formal rule making process related to a liability cap framework for a covered catastrophic wildfires involving electric utilities,” and noted the process applies to utilities across the state, including HECO and KIUC. He said the commission has not predetermined a final structure and listed statutory factors the PUC must consider, including affordability, public-interest protections, utility accountability, wildfire mitigation planning, legal considerations and long-term system stability.

Sidon Consulting’s Nathan Pollock outlined common goals and limits of liability caps. “A liability cap will also not automatically determine compensation outcomes,” Pollock said, adding that caps do not eliminate utility accountability and would not, on their own, resolve all wildfire recovery challenges. The consultants and commissioners emphasized that while caps focus on utilities’ maximum payable liability, creation of any wildfire recovery fund would be a separate legislative decision and that cap design would affect the size and role of any future fund.

The PUC presented a set of topic areas on which it is seeking input: (1) affordability and electric rates, (2) utility accountability and mitigation, (3) insurance market impacts, (4) legal rights and recovery considerations, (5) public trust and community perspectives, and (6) technical liability-cap design and the relationship to a wildfire recovery fund. Participants were given sample questions for each topic (for example, whether a cap should apply per event or over a period of time, and whether formulas should be fixed-dollar or scaled to utility size).

Staff stressed that technical expertise is not required and encouraged submissions based on lived experience and community priorities as well as technical or legal analyses. The PUC noted Act 258 requires consideration of annual compliance reporting and corrective-action procedures if a utility fails to meet required standards.

Practical submission details: the written submission portal opened on May 15; the PUC recommends using Google Chrome for best results. Supporting documents can be uploaded; submissions may be made individually or on behalf of organizations. For assistance, the PUC provided uccomms@puc.hawaii.gov. The current deadline for written submissions is Monday, June 15.

The webinar concluded with a reminder that the session was informational to inform draft rules; the PUC said presentation materials and a recording would be shared and encouraged continued participation as the formal rulemaking process proceeds.