PUC Annual Report–Fiscal Year 2004-05 - Public Utilities Commission

Public Utilities Commission Annual Report 2004-05State of Hawaii Page 26b. COMMISSION EXTENDS ZONE OF REASONABLENESSPILOT PROGRAM FOR MOTOR CARRIERS.In August 2003, the Commission opened an investigation to examine the feasibility ofestablishing a zone of reasonableness for passenger and property motor carriers. Under such amechanism, specific increases or decreases in a carrier’s rates and charges within an establishedzone of reasonableness would be automatically approved, if the requested changes fall within thezone or range authorized by the Commission for that carrier’s operations. In December 2003, theCommission established a one (1)-year zone of reasonableness pilot program governing theCommission’s motor carrier rate review and approval process. The zone of reasonablenessconsists of points within the range of plus or minus ten (10) per cent from a motor carrier’s baserate.In December 2004, the Commission extended the zone of reasonableness pilot programgoverning the Commission’s motor carrier rate review and approval process, as approved by theCommission in its 2003 decision, for an additional three (3) calendar years, from January 1, 2005up to and including December 31, 2007. In each year of the pilot program, a motor carrier’s baserate is the applicable, approved tariff rate on file with the Commission, effective as of January 1 ofthat year. The Commission reserves the right, at any time, to adjust or change the zone ofreasonableness or terminate the zone of reasonableness.c. COMMISSION REVIEWS REQUESTS FOR RATE CHANGES.During the Fiscal Year, the Commission reviewed and approved rate increases anddecreases within and outside of the zone of reasonableness pilot program which went into effecton January 1, 2004. During the Fiscal Year, all WMTB motor carriers filed requests for ratechanges. Of the independent motor carriers, the Commission reviewed and approved requestsfrom 31 motor carriers. None of the motor carriers belonging to HSCCCA filed requests for ratechanges. The Commission reviewed and approved the following motor carrier increases anddecreases:Rate Changes Within the Ten (10) Per Cent Zone Limit. For the rate changes thatwere within the zone limit of ten (10) per cent, most were for rate increases of seven (7) orten (10) per cent. Other rate increases ranged from less than one (1) to six (6) per cent. The ratechanges of only one (1) motor carrier included rate decreases. The Commission approved thefollowing motor carrier increases and decreases within the zone:Dump TruckType of Carrier/Company (County)Rate Increase orDecreaseDump Truck (Hawaii) 7.00%Dump Truck - selected rates (Hawaii) 2.80%Kona Transportation, Inc. (Hawaii) 5.70%Kona Transportation, Inc. - selected rates (Hawaii) 4.40%Dump Truck (Hawaii) 2.80%Pomaika’i Transport Services, Inc. dba P.T.S.I. (Oahu) 10.00%Conen’s Freight Transport, Inc. (Hawaii) 10.00%Kalaka Nui, Inc. (Oahu, Hawaii, Maui, Kauai) 7.00%Mamo K. Laranang dba Double H Trucking Co. - selectedrates (Hawaii)7.96%, 10.00%