Notice of Public Hearings – Young Brothers, LLC Rate Case (Docket No. 2024-0255)

News Release from Hawaiʻi Public Utilities Commission, Mar 13, 2025

The State of Hawaiʻi Public Utilities Commission (“Commission”) will hold public hearings to receive input on Young Brothers, LLC’s application for a general rate increase, motion for a temporary rate increase, and tariff changes.

All interested persons are invited to attend and share their views on the proposed rate changes, which are further described below.

Public Hearing Information

Date & Time  --  Island  -- Location

April 7, 2025, 5:30 p.m.
Oʻahu
Hybrid Participation Options

In person
Hawaiʻi Public Utilities Commission Hearing Room
465 South King Street, Room 103, Honolulu, HI 96813

Online (via web browser or WebEx mobile device app)
Link: https://hpuc.my.webex.com/hpuc.my/j.php?MTID=m505888920b416a574c6aa298d70fecc8

• Meeting number: 2551 520 6450
• Password: 0255
• Telephone Dial-in Number: +1-650-479-3208
• Access Code: 2551 520 6450

April 8, 2025, 5:30 p.m.
Hawaiʻi Island – Kona
In Person
Natural Energy Laboratory of Hawaiʻi Authority (NELHA), Hale Iako Building, Collaboration Area,
73-970 Makako Bay Drive,
Kailua-Kona, HI 96740

April 9, 2025, 5:30 p.m.
Hawaiʻi Island – Hilo
In Person
Hawaiʻi Community College, Building 388, Rooms 101 & 102,
1175 Manono Street, Hilo, HI 96720

April 14, 2025, 5:30 p.m,
Kauai
In Person
Lihue State Office Building Conference Rooms 209 A, B, and C

3060 Eiwa Street Lihue, Hawaii 96766

Future meetings, locations, and times to be determined.

Special Assistance

If you require auxiliary aids, services, or other accommodations due to a disability, please contact the Public Utilities Commission at (808) 586-2020 or puc@hawaii.gov as soon as possible. Requests made early have a greater likelihood of being fulfilled.

Brief Summary of Application

Young Brothers, LLC is a water carrier authorized to transport interisland/intrastate property by barge between the islands of Oʻahu (Honolulu), Hawaiʻi (Kawaihae and Hilo), Kauaʻi (Nawiliwili), Maui (Kahului), Molokaʻi (Kaunakakai), and Lānaʻi (Kaumalapau).

On October 15, 2024, Young Brothers filed an application requesting Commission approval of a total revenue increase of $26,368,923 (27.06%) over revenues at current effective rates. The Company further seeks approval of:

A rate of return of 10.92% on rate base.
Revisions to its rate schedules and rules.
Implementation of the first-tier of the Water Carrier Inflationary Cost Index (“WICI”), an automatic annual rate adjustment mechanism.

According to Young Brothers, the requested rate increase is to

Recover costs related to capital investments for the safety and reliability of its water carrier services, including new barges and tugs.
Account for increasing operating expenses.
Adjust for shipping volumes that have not returned to pre-COVID-19-pandemic levels.

Water Carrier Inflationary Cost Index (“WICI”)

Young Brothers proposes implementing the first-tier of WICI, which would:

Be tied to the United States Bureau of Economic Analysis’s (BEA) Gross Domestic Product Price Index (GDPPI), excluding food and energy prices.
Allow for an annual rate adjustment applied for on the first business day of June each year.
Be capped at 5% per year to limit the impact on customers.

Temporary Rate Increase (“TRI”)

On February 7, 2025, Young Brothers filed a motion for a Temporary Rate Increase (“TRI”) to be implemented in two steps:

20% increase effective April 1, 2025
Additional 5% increase effective July 1, 2025

These temporary rate increases would be applied evenly across all regulated cargo rates. Once the Commission rules on the proposed General Rate Increase (“GRI”), the TRI rates would no longer be in effect.

Proposed Rate Changes (System-Wide)

Targeted Rate Increases

Rate Category  --  Proposed Increase (%)

• LCL – Less than Pallet (Dry)  35%
• LCL – Less than Pallet (Reefer)  45%
• Hilo Containers & Straight Load  35%
• LCL – Hazardous  35%
• Minimum Bill of Lading (MBOL)  41.5% – 76.6%
• Trans-Shipment  20%

Residual Rate Increases

Rate Category  -- Proposed Increase (%)

• Automobiles  30%
• Bulk-Auto Discount  10%
• Roll-On, Roll-Off  30%
• LCL – Pallets (Dry)  30%
• LCL – Pallets (Reefer)  40%
• Non-Hilo Containers & Straight Load  19.25%
• Storage & Detention  20%

The Commission will review Young Brothers’ requests to determine whether the proposed General Rate Increase, WICI, and Temporary Rate Increase are just and reasonable.

To view the full Application and all docketed documents, see the “DOCUMENTS” tab for Docket No. 2024-0255.

Public Comments and Statements

Oral Comments:

Individuals wishing to provide oral comments at the hearing may sign up at the time of the hearing.
Time limits may be imposed to ensure all attendees have the opportunity to speak.

Written Comments:

All written comments should reference Docket No. 2024-0255.
Written comments may be submitted via:

Online: Submit Public Comments
E-mail: puc@hawaii.gov
Mail:
Hawaiʻi Public Utilities Commission
465 South King St., #103
Honolulu, HI 96813

More Information

For up-to-date information on this proceeding, visit the Commission’s website: Docket No. 2024-0255

Notice of Public Hearing – Oahu
Notice of Public Hearing – Hawaii Island
Notice of Public Hearing – Kauai

For inquiries, please contact the Commission’s Honolulu Office at (808) 586-2020 or puc@hawaii.gov.

Motions to Intervene or Participate in this proceeding shall comply with subchapter 4, Rules of Practice and Procedure Before the Public Utilities Commission, Hawaiʻi Administrative Rules, Title 16, Chapter 601.

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