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

Public Utilities Commission Annual Report 2004-05State of Hawaii Page 30Type of Carrier/Company (County)Alexander C. Naumu dba Anytime Island Express – selected rates(Kauai)Rate Increase orDecrease10.00%Katherine Cole Ross dba Shark’s Tours – selected rates (Hawaii) 7.69%Rate Changes Outside the Ten (10) Per Cent Zone Limit. The Commission reviewsrequests for rate increases that do not fall within the zone of reasonableness. In its review ofthese requests, the Commission requests the motor carriers to submit financial statementscontaining the companies’ revenues, expenditures, and operating ratio. The Commissionapproves the rate increase or decrease based on an acceptable operating ratio reported in thefinancial statement. During the Fiscal Year, the Commission reviewed and approved thefollowing rate change that did not fall within the zone of reasonableness:PassengerType of Carrier/Company (County)Rate Increase orDecreaseRobert’s Tours & Transportation – selected rates (Oahu) 25.28%2. WATER CARRIERS.The Commission regulates four water carriers: Young Brothers, Limited (“YoungBrothers”), a provider of inter-island cargo service between all major islands; Sea Link of Hawaii,Inc., a passenger and cargo carrier providing water transportation services between the islands ofMaui and Molokai; Hone Heke Corporation (“Hone Heke”), a passenger and cargo carrierproviding water transportation services between the islands of Maui and Lanai; and HawaiiSuperferry, Inc. (“Hawaii Superferry”), a passenger and cargo carrier between the islands ofOahu and Kauai, Maui and Hawaii. Water carrier proceedings are summarized below.a. COMMISSION GRANTS HAWAII SUPERFERRY ACERTIFICATE.In December 2004, the Commission granted Hawaii Superferry a CPCN to operate as acommon carrier by water of passengers and property, between the islands of Oahu and Kauai,Maui and Hawaii, subject to certain conditions set by the Commission. Hawaii Superferry isrequired to submit quarterly reports describing, among other things, the status of its progress inthe construction and delivery of its vessels and in any improvements undertaken at the harborfacilities, the costs of such improvements, and the status of its progress in securing theappropriate financing. Hawaii Superferry will develop and operate a high-speed roll-on/roll-offservice, using two (2) vessels.b. COMMISSION APPROVES CONTINUATION OF ZONE OFREASONABLENESS PILOT PROGRAM.In April 2005, the Commission approved the stipulation between Young Brothers and theConsumer Advocate which, among other things, agrees to extend the previously approved three(3)-year pilot program for an additional three (3) years, from December 20, 2004 to December 20,2007. The Commission also approved Young Brothers’ 2002 and 2003 cost of service studies,subject to the same terms and conditions set forth in the Commission’s order approving the 2001cost of service study. In December 2001, the Commission initially approved the three (3)-yearpilot program which authorizes Young Brothers to file for rate flexibility within an approved zone ofreasonableness.