Item 8.01. Other Events. The following is an update to the disclosure on the "Performance-based regulation proceeding" in Note 3 of the Notes to Condensed Consolidated Financial Statements, which is incorporated herein by reference to page 17 ofHEI's and Hawaiian Electric's Form 10-Q for the quarterly period endedSeptember 30, 2020 , andHEI's and Hawaiian Electric's Form 8-K Current Report datedJanuary 4, 2021 . Performance-based regulation proceeding OnJanuary 15, 2021 thePublic Utilities Commission of the State of Hawaii (PUC) issued an Order, granting the Utilities' motion for partial clarification and/or reconsideration of the PUC's Decision and Order (D&O) issued inDecember 2020 in the performance based regulation (PBR) proceeding that was filed onJanuary 4, 2021 . The Utilities sought partial clarification and/or reconsideration of the D&O with respect to (i) the treatment of the "pre-PBR" management audit savings commitment as part of the customer dividend component of the ARA in the new PBR Framework and (ii) clarification regarding implementation of certain matters regarding certain new performance incentive mechanisms (PIMs) under the PBR framework. The Order approved the Utilities' proposed alternative levelized committed savings per the Management Audit over the multi-year rate period of$33.03 million , to be delivered to customers at a rate of$6.61 million per year from 2021 to 2025, and the remaining Enterprise Resource Planning system benefits savings of$3.9 million , to be delivered to customers in 2021. The Order also provided clarification on certain new PIMS under the PBR framework. Item 7.01. Regulation FD Disclosure. The Utilities appreciate the PUC's expeditious action in response to the Utilities' motion for partial clarification and/or reconsideration, as well as the PUC's acknowledgement in its Order of the alignment of the savings commitment with the Management Audit findings and its intent with respect to cost control. In particular, the Order states: "…it is not the Commission's intent to induce indiscriminate cost-cutting; rather, cost control should be mindfully applied to those areas where improvement is needed, as discussed in the Management Audit and as other circumstances may warrant." The foregoing descriptions of the PUC'sJanuary 15 Order under Items 7.01 and 8.01 are qualified in their entirety by reference to the full text of the Order, which can be found on the PUC website at dms.puc.hawaii.gov/dms (Docket No. 2018-0088 for the Performance-Based Regulation proceeding). The information furnished in connection with Item 7.01 of this current report on Form 8-K shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
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dms.puc.hawaii.gov/dms (Docket No. 2018-0088 for the Performance-Based
Regulation proceeding) in order to review documents filed with and issued by the
PUC. No information on the PUC website is incorporated by reference in this
document or in
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