HB914 would give the Hawaii Public Utilities Commission new authority to create automatic adjustment mechanisms for water carriers, including a required water carrier inflationary cost index mechanism tied to annual changes in a Bureau of Economic Analysis index. The mechanism would adjust rates annually, whether the index change is positive or negative, and would be capped at plus or minus 5 percent per year. The bill also defines “automatic adjustment mechanism” as a rate adjustment allowed between rate cases.
The measure revises the water carrier tariff process to treat requests for automatic adjustment mechanisms as 45-day tariff transmittal filings rather than general rate increase applications. It also changes the notice period for changes to an approved automatic adjustment mechanism surcharge from 45 days to 30 days. In addition, the bill authorizes the commission, on its own or at a carrier’s request, to waive or exempt a water carrier from any requirement of Chapter 271G or related rules, orders, or laws if the requirement is found not to apply, or to be unjust, unreasonable, or not in the public interest.
Impact
HB914 would amend Chapter 271G, Hawaii Revised Statutes, governing water carriers, by adding a new automatic adjustment mechanism framework and expanding the Public Utilities Commission’s discretion over rate-setting and regulatory exemptions. It would affect tariff filings, rate-change notice requirements, commission review procedures, and the legal treatment of mid-cycle rate adjustments for water carriers. The bill also broadens the commission’s authority to waive statutory or regulatory requirements for water carriers under specified findings.
Sentiment
The available legislative history shows little recorded opposition at the reported stage. The bill was reported out of committee and referred onward with no members voting no and no votes in reservation, suggesting general support or at least no active recorded resistance in that action. The bill’s framing as a tool to address inflation and regulatory lag also indicates a policy rationale that may have been viewed favorably by the committee.
Contention
The main policy tension in HB914 is between providing water carriers more flexible, automatic rate recovery and preserving regulatory oversight and consumer protection. Supporters would likely emphasize reduced regulatory lag, inflation tracking, and more predictable cost recovery for carriers, while critics may be concerned that automatic adjustments could reduce scrutiny of rate changes and shift costs to customers more quickly. The broad waiver authority granted to the commission is another potential point of concern because it allows exemptions from chapter requirements and other laws if deemed not in the public interest, which could be seen as either useful flexibility or an overly expansive delegation of authority.
Urging The Public Utilities Commission To Support The Complete Transfer Of Its Regulatory Authority Over Motor Carriers And Other Means Of Transportation, Including Water Carriers, To The Department Of Transportation.
Urging The Public Utilities Commission To Support The Complete Transfer Of Its Regulatory Authority Over Motor Carriers And Other Means Of Transportation, Including Water Carriers, To The Department Of Transportation.