The effective date of the new rate, which is nearly two-thirds less than the Young Brother’s original request, will be determined by the PUC. The increase may be more than 4.3 percent for some cargo types and less for others, according to the released statement.
The rate increase is the company’s first significant one in six years, according to the statement, but it may not be the only one in 2019.
“The decision enables our company to keep pace with increasing costs and to reinvest in the business after necessary capital expenses,” Boivin said in the statement. “To continue pursuing a rate that will allow us greater financial stability in the face of steadily increasing operating costs, we anticipate filing for another rate case later this year.”
Young Brothers, Hawaii’s only PUC-regulated inter-island water carrier, has replaced two of the company’s six towing tugs and will replace two more by mid-2019, according to the statement.