Consumer Advocate urges PUC to reject proposed WICCI and open investigatory docket on Young Brothers

At a hearing before the Public Utilities Commission, the Consumer Advocate’s witness, Mr. Angelo, told commissioners that Young Brothers’ overall revenue request is overstated and that the proposed WICCI (described in testimony as a rate-adjustment mechanism) is not appropriate for the utility.

Mr. Angelo said the commission should decline to adopt the WICCI as proposed and instead open an investigatory docket that would examine Young Brothers’ total-company operations and finances and could include a stakeholder working group. "I do not. It's overstated, and the revenue requirement is overstated and too high. The Wiki is not an appropriate mechanism," Mr. Angelo testified. He said a commission-led investigatory proceeding that includes decision-making authority and transparent docketed filings may be preferable to a stand‑alone working group.

The Consumer Advocate characterized WICCI-type automatic adjustments as suitable only for costs that are both outside a utility’s control and unpredictable. Mr. Angelo urged that the largest driver of Young Brothers’ recent cost increases appears to be labor — a cost he described as at least partially controllable — and therefore not an appropriate basis for an automatic adjustment that shifts risk to ratepayers.

Mr. Angelo said he attended all of the public hearings on the docket on Oahu, Maui, Hilo (Big Island), Kauai and Lanai and reported hearing widespread concern about the proposed rate increases and service problems such as cargo and packages being left on docks. He also urged the commission to "break the cycle" of recurring financial crises at Young Brothers by allowing a proceeding that examines the entire company rather than locking in an automatic adjustment now.

Commissioners pressed Mr. Angelo on several points, including the Consumer Advocate’s prior participation in the Hawaii Water Cares Working Group and that group’s final report; Mr. Angelo acknowledged the working group recommended a WICCI option but said the working-group materials also discussed performance metrics and other risk‑reduction measures that should be considered before adopting any automatic adjustment.

The matter will proceed as part of the record before the commission. The Consumer Advocate recommended that, if commissioners approve any rate changes, they do so without authorizing the WICCI and then open a separate investigatory docket (with an option for a stakeholder working group) to evaluate total‑company costs, operations and potential efficiencies.

The hearing record shows cross‑examination and follow‑up questions remain on details of WICCI design, the relationship between labor costs and controllability, and what a stakeholder process should include. The commission has not made any decision on WICCI in the hearing transcript.

Sources in the hearing included Consumer Advocate direct testimony, public comments filed in the docket, and cross‑examination by commission counsel and Young Brothers’ attorneys.