PUC hearing hears YB explain allocation model and elasticity‑adjusted rate design; LCL and Kaholo auto sailings discussed

Young Brothers’ operations and cost‑allocation witness Michael Starkey told the Public Utilities Commission that the company’s jurisdictional allocation model (YB Business Intelligence Platform, YB BIP) allocates most vessel costs by minute of use and fuel burn so regulated services are charged only their proportionate share of shared tug, barge and shoreside costs.

Starkey described the mechanics: the company’s HELM vessel‑tracking system logs each vessel minute by route and by task; YB BIP consumes that data and classifies sailings as either charter (allocated entirely to unregulated/charter customers) or non‑charter regulated sailings. “All charter voyage minutes are allocated directly to the unregulated side,” he said. For vessel costs, the model uses time (minutes underway) to allocate most costs and uses measured fuel consumption to allocate fuel expense.

Starkey and company counsel then described how YB used the allocation outputs in rate design. Starkey said outputs from YB BIP feed a revenue‑requirement model (Schedule G…