NOTICE OF PUBLIC HEARING
APPLICATION OF YOUNG BROTHERS, LLC.
FOR APPROVAL OF A GENERAL RATE INCREASE AND
CERTAIN TARIFF CHANGES.
Docket No. 2024-0255
The STATE OF HAWAII PUBLIC UTILITIES COMMISSION ("Commission"), pursuant to Hawaii Revised Statutes §§ 269-12 and 269-16, HEREBY GIVES NOTICE that it will hold a public hearing regarding Young Brothers, LLC.’s (“Applicant” or “Young Brothers”) request for a general rate increase as stated in its Application for Approval of a General Rate Increase and Certain Tariff Changes filed on October 15, 2024 (“Application”) and supplemented by Applicant’s Motion for Temporary Rate Relief, Witness Testimonies and Exhibits filed on February 7, 2025. The public hearings will be held in person on:
Monday, April 14, 2025, at 5:30 p.m.
Lihue State Office Building
Conference Rooms 209 A, B, and C
3060 Eiwa Street
Lihue, Hawaii 96766
The Commission will investigate whether Applicant’s proposed General Rate Increase, Water Carrier Inflationary Cost Index (“WICI”), and Temporary Rate Increase are just and reasonable.
General Rate Increase
Applicant seeks approval of the following requests from the Commission:
1) A revenue increase of $26,368,923 or 27.06% over revenue at present rates for the 2025 Test Year (based on a rate of return on rate base of 10.92%);
2) Permanent rates that will allow Young Brothers an opportunity to earn a fair rate of return on its investments to go into effect within the timeframe stipulated by the parties to this proceeding, as approved by the Commission;
3) Implementation of the first-tier of the WICI, an automatic annual rate adjustment tied to the annual percentage change in the GDP Price Index, capped at 5%; and
4) Other relief as the Commission deems just and appropriate under the circumstances.
Applicant’s proposed changes for its General Rate Increase request are summarized below:
Rate Category Percentage Change
A. Targeted Rate increases________________________
1. LCL – less than pallet (DRY) 35%
LCL – less than pallet (REEFER) 45%
2. HILO Containers and Straight Load 35%
3. LCL – Hazardous 35%
4. Minimum Bill of Lading (MBOL) 41.5%-76.6%
5. Trans-Shipment 20%
B. Residual Rate Increases________________________
6. Automobiles 30%
7. Bulk-Auto Discount -10%
8. Roll-On, Roll-Off 30%
9. LCL- Pallets (DRY) 30%
10. LCL – Pallets (REEFER) 40%
11 Non-Hilo Containers and Straight Load 19.25%
12 Storage and Detention 20%
Water Carrier Inflationary Cost Index
Young Brothers states in its Application that the Water Carrier Inflationary Cost Index or WICI is intended to help mitigate increases in operating costs associated with inflationary pressures and that the first-tier of the WICI is an annual rate adjustment tied to the Gross Domestic Product Price Index (GDPPI). Applicant requests that the Commission approve the first-tier of the WICI annual adjustment on an expedited basis, by March 1, 2025. Furthermore, after the initial WICI rate adjustment, Applicant proposes filing by the first business day of June of every year of a subsequent WICI rate adjustment, a notice with the Commission that provides the amount of the annual rate adjustment along with the supporting GDPPI documentation.
If authorized, the WICI would be applied to all regulated cargo rates in Tariff No. 5-A in effect at the time of the WICI’s annual implementation, adjusted to remove applicability to fuel surcharges, and capped at 5% per year.
Temporary Rate Increase
On February 7, 2025, the Applicant filed a Motion for Temporary Rate Relief in two steps: a first step increase of 20% by April 1, 2025, and a second step increase of 5% by July 1, 2025. If authorized, each temporary rate step increase would be applied to all regulated cargo rates in Tariff No. 5-A in effect at the time of each step increase.
If authorized, the temporary rate relief would be in effect until the Commission issues a decision on the General Rate Increase. Any authorized General Rate Increase would not be in addition to any Temporary Rate Increase, but would instead be adjusted to account for any authorized Temporary Rate Increase.
Summary
The foregoing is a brief summary of the requests included in the Application and Motion for Temporary Rate Relief. Copies of the Application, Motion for Temporary Rate Relief, and other filings are available for public review through the Commission’s electronic Case and Document Management System, accessible at https://hpuc.my.site.com/cdms/s/search and typing in “2024-0255” into the search bar. In addition, copies of the Application and Motion for Temporary Rate Relief are also available for review by contacting the Commission’s Honolulu Office [(808) 586-2020], Hawaii District Office [(808) 974-4533], Kauai District Office [(808) 274-3232], Maui District Office [ (808) 264-4438], or the Division of Consumer Advocacy [(808) 586-2800].
The purpose of the public hearings is to receive testimony on the views of the general public regarding the proposed General Rate Increase, WICI, and Temporary Rate Increase. All interested persons are invited to attend the public hearings to state their views on the proposed General Rate Increase, WICI, and Temporary Rate Increase. The Commission may impose time limits for each person’s testimony so that all in attendance will have the opportunity to speak at the public hearings. Statements may also be e-mailed to the Public Utilities Commission at puc@hawaii.gov or mailed to the Public Utilities Commission, 465 South King Street, Room 103, Honolulu, Hawaii 96813. All written statements should reference Docket No. 2024-0255.
Any person may request an auxiliary aid or service or an accommodation due to a disability by contacting the Commission no later than 5 business days prior to the hearing date.
Motions to Intervene or Participate in this proceeding shall comply with subchapter 4, Rules of Practice and Procedure Before the Public Utilities Commission, Hawaii Administrative Rules (“HAR”), Title 16, Chapter 601, including the filing deadline in HAR § 16-601-57(1).
_______________________
Leodoloff R. Asuncion, Jr.
Chair
(TGI1487853 3/24, 3/31, 4/07, 4/12/25)
