PUC Annual ReportâFiscal Year 2004-05 - Public Utilities Commission

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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.
Public Utilities Commission Annual Report 2004-05State of Hawaii Page 31c. COMMISSION APPROVES YOUNG BROTHERS AMENDEDCOMMODITY RATES TARIFF.In May 2005, the Commission approved Young Brothers’ commodity rates tariff changeson a permanent basis. These tariff changes were previously approved by the Commission for aone (1)-year trial period from July 1, 2004 to June 30, 2005. The tariffs relate to the shipment ofcargo utilizing shipper-owned equipment and Young Brothers-owned equipment. For the tariffrelating to shipper-owned equipment, Young Brothers changed the method for calculating thecharge for the shipment of cargo utilizing shipper-owned platforms and added a long lengthpenalty for the shipment of cargo utilizing shipper-owned equipment. For the tariff relating toYoung Brothers-owned equipment, Young Brothers made certain non-substantive changesmaking the long length charges consistent in its tariff.G. ONE CALL CENTER PROCEEDINGS.The 2004 Legislature passed Act 141, SLH 2004 (“Act 141”), which establishes a one callcenter to coordinate the location of subsurface installations and to provide advance notice tosubsurface installation operators of proposed excavation work. Pursuant to Act 141, theCommission is required to establish a One Call Center advisory committee (“Committee”) toadvise the Commission on the implementation of Act 141. Act 141 requires that the Commissionestablish and begin administration of a One Call Center by January 1, 2006. The Commission isresponsible for awarding administration of the center to the provider it determines to be bestqualified to provide center services.1. COMMISSION ESTABLISHES ONE CALL CENTER ADVISORYCOMMITTEE.In August 2004, the Commission instituted a proceeding to establish a Committee andappoint the members of the Committee. Pursuant to Act 141, the Committee shall be comprisedof 15 voting members and one ex officio nonvoting member. Of the 15 voting members, nine (9)voting members shall be appointed by the Commission and consist of: (1) one (1) member fromthe gas utility industry; (2) one (1) member from the electric utility industry; (3) one (1) memberfrom the telecommunications utility industry; (4) one (1) member from the pipeline operatorindustry; (5) two (2) members from the General Contractors Association of Hawaii (“GCA”);(6) two (2) members from the Building Industry Association of Hawaii (“BIA”); and (7) one (1)member from the cable service industry. 8 As requested by the Commission, the Utilities DamageTask Force (“Task Force”) submitted its list of recommended nominees to fill the nine (9) seats onthe Committee.In November 2004, the Commission formally established the Committee and approvedthe Task Force’s recommended nominees submitted to the Commission. The Commissionannounced the 15 voting members comprised of representatives from the following: StevenGolden (gas utility industry); Ken T. Morikami (electric utility industry); Calvin Choy(telecommunications utility industry); Don Grimes (pipeline operator industry); Leonard Leong andSidney Quintal 9 (GCA); John Cheung and Ron Oshiro (BIA); Lance Uno (cable service industry);8 Act 141 specifies that the additional six (6) members are: the Director of the StateDepartment of Transportation ("DOT") or the Director's representative; (2) the Executive Directorof the Division of Consumer Advocacy or the Executive Director's representative; and (3) one (1)member from each of the counties of Maui, Kauai, Hawaii and the city and county of Honolulu,designated by the respective mayors.9 Sidney Quintal has been replaced by Randall Ching.
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PUC Annual ReportâFiscal Year 2004-05 - Public Utilities Commission

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PUC Annual ReportâFiscal Year 2004-05 - Public Utilities Commission