Toward a More Resilient and Modern Future through Performance Incentive Mechanisms

Sierra Withers, MS '24, Civil and Environmental Engineering
Graduate Fellow, Office of Policy and Research 
Hawai'i Public Utilities Commission

This summer, I am working at the Hawai’i Public Utilities Commission in the Office of Policy and Research in downtown Honolulu. As the Hawaiian Islands are the most isolated pieces of land in the world that are inhabited, their electricity system is extremely unique. With climate change rising sea levels and increasing rates of severe weather events, the islands need rapid resilience and mitigation efforts for protection. Hawaii has the aggressive goal of 100% renewable energy by 2045 through a just transition toward a resilient and independent electricity grid. 

The Hawai’i Public Utilities Commission regulates the utilities that provide electricity, gas, telecommunications, water and transportation. Specifically, the Commission regulates four electric utility companies which serve Hawaii’s six main islands. Each island has a completely isolated electric grid from the other islands, creating a framework that relies on reliability and resiliency due to their isolated natures. The HPUC adopted a performance-based regulation system in 2021, with a set of new Performance Incentive Mechanisms (PIMs), Reported Metrics, and Scorecards. All of these tools are used to incentivize targeted performance in specified areas that further the State’s electrical goals toward a clean energy future. For my project, I am working on developing PIMs for electric system grid modernization and resilience. There are currently no formal metrics to evaluate resilience in the power industry that have received universal acceptance and deployment. Resilience is a large consideration for an electric system, especially considering climate change worsening the storms and natural disasters that affect Hawaii. In addition, grid modernization is vital for adopting distributed energy resources and high renewable penetrations in the coming years. My project centers around developing clear metrics to track the utilities performance on both resilience and grid modernization. 

Currently, my typical day begins with a mentor meeting with Grace Relf, the Chief of Policy and Research at the HPUC where we discuss my project, any questions that have arose, and future considerations. Then I research relevant frameworks and continue to gain knowledge on the PBR framework and current dockets at the HPUC. I attend relevant docket meetings, team meetings, and sometimes meet up for lunch with my fellow interns. I am only in my third week of this fellowship, so I primarily review industry literature and the current and past work of the PUC. I have already learned so much about the initiatives of the HPUC, and the working relationship between the utility and the commission. I have been having an amazing time exploring Oahu and took my first interisland flight to the Big Island this last weekend. I have also been eating poke at every chance and enjoying the local coffee!