Public Utilities Commission

During the regular 2020 legislative session, the Senate adopted SR 125 SD 1, requesting the Public Utilities Commission to convene a working group to discuss and recommend both mid-term and long-term solutions to balance the need for continuous interisland / intrastate water carrier service in the State of Hawaii with the need for water carriers to maintain financial sustainability.

The HWCWG held 13 stakeholder meetings from August 2020 through October 2021 to gather background information on water carriers, Hawaii’s harbor system, regulatory oversight of water carriers, identify potential issues and topic areas, establish small groups/subcommittees for each topic area, and to have initial discussion on the development of recommendations.

The HWCWG’s final report was submitted to the legislature on December 27, 2021.

Final Report of the HWCWG

The HWCWG identified gaps, critical areas and topic areas and then engaged in a Force Field Analysis to develop six recommendations around three topic areas: (1) A two-tiered interim annual rate adjustment for regulated cargo rates along with the requirement for the water carrier to submit a general rate case every three years; (2) Enhancing the water carrier’s reservation system to cover all lines of services which will improve the accuracy of booking reservations and improving the overall customer experience; and (3) Establishment of a broad subsidy for trans-Pacific and interisland cargo, the source of which may come from existing or newly created federal, state, and county government programs.

Working Group Meeting Agendas, Memories, Status Reports, Presentations and Other Material by Meeting Date

Date (download all files)	Agenda	Notes – Group Memory	Reports	Presentations and Other Materials
Meeting #1 – July 31, 2020				SR125 SD1 Declaration of Policy PUC Order No. 37161, Docket No. 2020-0084
Meeting #2 – September 17, 2020	Agenda	Notes – Group Memory Meeting #1		PUC Letter to Working Group Results of Meeting Time Poll Draft List of Needs Draft Desired Elements State Presentation Slides YB Presentation Slides HPUC Tariff Review HPUC SharePoint Instructions
Meeting #3 – October 15, 2020	Agenda	Notes – Group Memory Meeting #2		Rules of Operation Starting Point and Parameters List of Gaps Critical Areas YB Responses to Working Group Questions Updated SharePoint Instructions Recommendation Sheets Updated List of Needs Updated Desired Elements Background Material
Meeting #3 – Breakout				YB Response to HDOA Questions AJO Response to HDOA Questions
Meeting #4 – November 19, 2020	Agenda	Notes – Group Memory Meeting #4	Report on Breakout Sessions Report from YB on its Customer Service Strategy	Recommendation Sheet Presentation on Commercial Shipping Presentation on YB’s 2021 Customer Service Strategy Plan Presentation from Harbors Sub-committee on Land Use at Harbors
Meeting #4 – Breakout Agriculture Stakeholders December 9, 2020		Notes – Group Memory Meeting #4 Breakout Agriculture Stakeholders Listening Session
Meeting #5 – December 17, 2020	Agenda	Notes – Group Memory Meeting #4		Presentation on KCT Force Field Analysis Handout
Meeting #6 – January 21, 2021	Agenda	Notes – Group Memory Meeting #5		Summary on Desired Future from Working Group Members
Meeting #7 – March 18, 2021	Agenda	Notes – Group Memory Meeting #6	Report from Pier Space Small Group Report from Sustainability and Profitability Small Group Report from Cargo Services Small Group Report from Subsidies Small Group Report from Rates Small Group
Meeting #7 – Breakout Rates	Agenda January 29, 2021 Agenda February 12, 2021   Agenda February 25, 2021   Agenda March 12, 2021	Group Memory January 29, 2021 Group Memory February 12, 2021   Group Memory February 25, 2021	Rates Small Group Outline Framework February 12, 2021 Draft Report Rates Small Group February 25, 2021	YB Presentation on the Differences of Regulation Between Intrastate and Interstate February 12, 2021 YB Presentation Comparing Regulation February 12, 2021 YB Presentation on Financials February 12, 2021
Meeting #7 – Breakout Sustainability & Profitability		Notes – Group Memory January 28, 2021   Notes – Group Memory February 4, 2021
Meeting #8 – May 20, 2021	Agenda	Notes – Group Memory Meeting #7	Updated Report from Cargo Services Small Group Updated Report from Subsidies Small Group Updated Report from Rates Small Group Updated Report from Sustainability and Profitability Small Group	Outline for Report to the Governor and Legislature
Meeting #9 – June 17, 2021	Agenda	Notes – Group Memory Meeting #8	Recommendations from Cargo Services Small Group Recommendations from Subsidies Small Group
Meeting #10 – July 15, 2021	Agenda	Notes – Group Memory Meeting #9	Updated Recommendations from Cargo Services Small Group Recommendations from Rates Small Group Recommendations from Pier Space Small Group Recommendations from Subsidies Small Group	Performance Measures Applicable to YB Annual Freight Rate Adjustment Pilot Program Order on the Calculation thereof Annual Freight Rate Adjustment Pilot Program Order adopting performance metrics and standards Performance Report seen in YB 2018 Test Year Rate Case Performance Statement seen in YB 2020 Test Year Rate Case Performance Report seen in YB 2020 Test Year Rate Case
Meeting #11 – August 19, 2021	Agenda	Notes – Group Memory Meeting #10	Updated Recommendations from Subsidies Small Group Draft Report to the Hawaii State Legislature and Governor
Meeting #12 – September 16, 2021	Agenda	Notes – Group Memory Meeting #11	Second Draft Report to the Hawaii State Legislature and Governor
Meeting #13 – October, 22, 2021	Agenda	Notes – Group Memory Meeting #12	Pre-Final Report to the Hawaii State Legislature and Governor	Subsidies Small Group National Conference of State Legislatures Resolution on National Resources and Infrastructure
Post Meeting – November 9, 2021		Notes – Group Memory Meeting #13	Second Pre-Final Report to the Hawaii State Legislature and Governor

Updated 12/2021