Categorized | Business, Government, News

PUC approves rate increase of 16.58 percent for Young Brothers

MEDIA RELEASE

HONOLULU –Friday (Dec 16) the Hawaii Public Utilities Commission (PUC) approved the settlement reached last month between Young Brothers and the Division of Consumer Advocacy and ruled on a disputed issue in the Young Brothers’ rate case. The approved settlement and decision reduced Young Brothers’ original request for an increase of 23.97% ($14,195,000 in additional revenue) to an increase of 16.58% ($10,574,932 in additional revenue). Young Brothers’ main argument for a rate increase was to sustain its ability to serve customers because cargo volume has fallen short of its forecasts.

“The Commission strives to balance a utility’s financial health with adequate service at reasonable rates. We recognize that rate increases are difficult for customers, especially in today’s economic climate, but regular cargo service is critical in maintaining economic activity throughout Hawaii,” said Hermina Morita, Chair of the Commission.

The Commission’s decision approved rate increases in the container, flatracks/platforms, automobile, roll-on/roll-off cargo, G-Vans, and other less than container load cargo categories, at various percentages; allowed other changes to Young Brothers’ tariff; and granted use, subject to conditions, of a new internal financial closing schedule.

In the decision, the Commission also restated its authority to examine, through an order to show cause or other investigative proceeding, Young Brothers’ actual earnings to ensure that earnings do not result in a windfall in an improved economy where actual cargo volume surpasses the forecasted cargo demand relied upon to determine the approved rate increase.

More detail about Young Brothers’ application can be found on the PUC’s website, puc.hawaii.gov, on the Select Dockets page (See Docket No. 2010-0171).

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