The state Public Utilities Commission issued a report on Dec. 31, recommending against establishing a wildfire recovery fund until outstanding and interrelated issues are resolved, including the impact upon utility rate payers and future wildfire victims.

The commission said a wildfire recovery fund of some kind is likely warranted in the future and it is identifying some outstanding issues involving benefits, risks and trade-offs for evaluation by state legislators.

The study, “Report to the 2026 Legislature on The Establishment and Implementation of A Wildfire Recovery Fund,” was requested under Act 258 during the 2025 legislative session.

The commission said the commission’s Office of Policy and Research looks at how a recovery fund could be structured, capitalized and administered and offers some insights from some 80 individuals representing 35 entities, including the need for proactive measures to prevent wildfires.

“They emphasized that investing in resilience through wildfire mitigation, vegetation management, and infrastructure improvements is as critical — if not more so — than investing in recovery,” the commission said in a summary.

The commission said a 2024 actuarial study found that Hawaiʻi faces $1.4 billion in expected annual property losses from a variety of natural hazards, including wildfires, with losses projected to rise over the next 25 years with climate change.

The study said a wildfire recovery fund, in combination with a liability cap, would likely provide greater certainty of managing catastrophic wildfire liabilities.

It said the creation and management of such a fund might be formed outside the commission as an independent entity, such as a public corporation.

The report noted that the frequency and severity of wildfires in the United States are rising sharply with more than 7,100 fires reported in early 2025 — a 37 percent increase over 10 years, including the 2023 Lahaina wildfire that cost an estimated $5.7 billion.

The report also looks at various ways states are imposing liability and damage caps and utility shareholder contributions.

To see the study in more detail visit https://puc.hawaii.gov/wp-content/uploads/2025/12/Wildfire-Recovery-Fund-Study-December-2025.pdf