Committees approve automatic wharfage index (WIKI) with guardrails and seven-year sunset

The Senate committees recommended passing HB 2386 HD2 with amendments that adopt the Public Utilities Commission’s proposed language, include a seven-year sunset and preserve mandatory full rate reviews every three years.

Why it matters: HB 2386 creates an automatic adjustment mechanism (WIKI) for water-carrier rates to allow interisland carriers like Young Brothers to make predictable, limited annual adjustments tied to an index (for example, wharfage or CPI) instead of waiting for full rate cases that can be time-consuming and expensive.

David Beltri, associate general counsel for Young Brothers, said WIKI’s guardrails — scheduled annual adjustments capped at 5%, ties to existing maritime-fee mechanisms, and full rate reviews every third year — will help keep rates aligned with costs while preserving regulatory oversight. Dre Kalei of DOT Harbors stood on written testimony supporting the bill’s ability to modernize rate regulation.

Opponents including the Hawaii Food Industry Association and the Maui Chamber of Commerce warned automatic adjustments could push up food and supply-chain costs; the food industry pointed to a recent PUC decision that rejected an automatic inflation-based pricing mechanism and imposed enhanced independent oversight in a prior rate case.

Decision: Committees adopted amendments (including PUC language and the seven-year sunset) and the recommendation to pass the bill. A few members recorded reservations but the recommendation was adopted and the measure will proceed with the adopted amendments.

Next steps: With committee passage and adopted amendments, the measure will move forward in the legislative process. The record shows members sought to balance carrier financial stability and consumer protections by adding caps, review requirements and a sunset.