Bill > HB2386

This bill allows the Public Utilities Commission (PUC), the state agency that oversees public utilities, to create automatic adjustment mechanisms for water carriers, which are companies that transport goods or people by water. These mechanisms, which can be initiated by the PUC or by a water carrier itself, are designed to help water carriers adjust their rates to account for economic factors like inflation and delays in rate adjustments, a concept referred to as "regulatory lag." Specifically, by July 1, 2026, the PUC must establish a water carrier inflationary cost index automatic adjustment mechanism for carriers transporting property, which will reflect changes in wharfage rates (fees for loading and unloading at harbors) and be capped at a 5% annual increase. This mechanism will be applied annually for two years within a three-year cycle, with the third year requiring the carrier to submit a standard rate increase application for review. The bill also defines "automatic adjustment mechanism" as any system allowing a water carrier to change rates between formal rate cases and grants the PUC the authority to waive or exempt water carriers from certain requirements of the Hawaii Water Carrier Act if deemed unjust, unreasonable, or not in the public interest.

Business and Industry, Transportation and Infrastructure

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=2386&year=2026