Automatic water carrier price hikes would harm businesses, consumers

April 9, 2026, 2 p.m.
Hawaii State Capitol
Conference Room 329 and Videoconference

To: House Committee on Consumer Protection & Commerce
      Rep. Scot Z. Matayoshi, Chair
      Rep. Tina Nakada Grandinetti, Vice Chair

From: Grassroot Institute of Hawaii
            Ted Kefalas, Director of Strategic Campaigns

RE: TESTIMONY OPPOSING THE PROPOSED HD2 FOR SB2694 — RELATING TO WATER CARRIERS

Aloha Chair, Vice Chair and other Committee Members,

The Grassroot Institute of Hawaii opposes SB2694 proposed HD2, which would allow automatic price adjustments for water carriers.

Ideally, local water carriers would operate in an open market and be able to respond to changing conditions in a competitive context. However, interisland shipping in Hawaii is not an open market, and the Public Utilities Commission must act as a check on escalating shipping costs. At present, the PUC’s role exists in part to address the concerns of local businesses and consumers regarding shipping rates.

Under the circumstances, automatic price increases would be harmful to local businesses and could contribute to the ever-rising cost of living and price of doing business in Hawaii. While the system as a whole might need  reform, automatic price increases are not the answer.

Thank you for the opportunity to testify.

Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii
1050 Bishop St. #508 | Honolulu, HI 96813 | 808-864-1776 | info@grassrootinstitute.org

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