The state Public Utilities Commission has unanimously approved a 25.75% rate increase for Young Brothers LLC, effective Jan. 1, 2026.

In its approval, the PUC cited Young Brothers’ “escalating financial instability and the overriding public interest in avoiding an abrupt loss of the regulated intraisland shipping services YB provides,” according to a news release from the state.

The approved increase is expected to generate an additional $26.1 million in annual revenue, bringing Young Brothers’ total annual intrastate revenue to $127.4 million to address its financial issues.

While it approved the rate increase, the commission denied Young Brothers’ request for a Water Carrier Inflationary Cost Index, a mechanism that would have permitted the company to automatically adjust its rates outside of a rate case before the PUC, according to the news release.

The commission also is imposing strict oversight conditions, including a prohibition on rate increases for at least two years, as Young Brothers implements its business plan intended to regain financial stability, improve operational efficiencies and break the cycle of seeking urgent and substantial rate increase requests.

This rate increase replaces, rather than adds to, the temporary 18.1% rate increase granted earlier this year, which will sunset Dec. 31.