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PA Bulletin, Doc. No. 05-1930

NOTICES

PENNSYLVANIA PUBLIC UTILITY COMMISSION

September 2005 Review of Fuel Cost Recovery Surcharge; S. P. 28208

[35 Pa.B. 5745]

Public Meeting held
September 29, 2005

Commissioners Present:  Wendell F. Holland, Chairperson; James H. Cawley, Vice Chairperson; Bill Shane; Kim Pizzingrilli; Terrance J. Fitzpatrick

Order

By the Commission:

   The Pennsylvania Public Utility Commission (Commission) by its Fuel Cost Recovery Surcharge Order at Special Permission Number 28208, adopted June 10, 2004, authorized call or demand, paratransit and airport transfer carriers under the jurisdiction of this Commission to adjust rates and fares to offset unanticipated fuel expenditures. All call or demand carriers were authorized to collect a fuel surcharge of thirty cents ($.30) per trip for each paying passenger, and all paratransit and airport transfer carriers were authorized to collect a fuel surcharge of seventy cents ($.70) per trip for each paying passenger in addition to tariff rates. The fuel surcharge was effective on June 14, 2004, and was scheduled to terminate on June 12, 2005.

   At its Public Meeting of June 2, 2005 the Commission approved an extension of the temporary fuel surcharge until June 12, 2006. The Commission also required the Bureau of Transportation and Safety to investigate the merits of the fuel surcharge on a quarterly basis.

   As a result of the volatile nature of gasoline prices in the aftermath of Hurricane Katrina, the amounts for the fuel surcharge were adjusted accordingly at the Public Meeting of September 9, 2005. Call or demand carriers were permitted to increase the fuel surcharge from $.30 per trip for each paying passenger to $.90 per trip for each paying passenger, and paratransit carriers and airport transfer carriers to increase the fuel surcharge from $.70 per trip for each paying passenger to $2.00 per trip for each paying passenger.

   The Commission also recognized that the price of fuel is likely to fluctuate in the future months. To ensure that the surcharge is appropriately adjusted to the price of fuel, it was ordered that the temporary fuel surcharge was to be evaluated on a monthly basis until further notice.

   According to data obtained from the Energy Information Administration of the Department of Energy, the average cost of regular unleaded gasoline for the week ending September 5, 2005 was $3.29, an increase of 64% over the $2.00 used at the beginning of the fuel surcharge. The most recent data for the week ending September 26, 2005 indicates that the price of gasoline is $2.83 per gallon, which is a decrease of $.46 or 14% from the average price for September 5, 2005.

   The effect of this decrease results in an average cost of fuel per trip of $1.28 for call or demand operations. This is a decrease of $.21 or 14% from the previous cost of $1.49. The average cost of fuel per trip for paratransit and airport transfer operations decreases from $3.44 to $2.96. That is a 14% decrease or a difference of $.48.

   Based upon the evidence available, we are of the opinion that the passenger motor carrier industry continues to have a need for the fuel surcharge. However, due to a decrease in prices we believe it is necessary to make adjustments to the fuel cost recovery surcharge; Therefore,

It Is Ordered that:

   1.  The Fuel Cost Recovery Surcharge established at Special Permission No. 28208 be continued.

   2.  Call or demand carriers rendering transportation service under the jurisdiction of the PA Public Utility Commission shall decrease the charge from $.90 per trip for each paying passenger to $.70 per trip for each paying passenger.

   3.  Paratransit carriers and airport transfer carriers rendering transportation service under the jurisdiction of the PA Public Utility Commission shall decrease the charge from $2.00 per trip for each paying passenger to $1.55 per trip for each paying passenger.

   4.  The decreases be approved to become effective October 3, 2005.

   5.  The Fuel Cost Recovery Surcharge will continue to be reviewed on a monthly basis with the next review taking place at the Public Meeting of October 27, 2005.

   6.  Call or demand motor carriers shall notify the public by placing a notice in all vehicles, which shall read: ''The PA Public Utility Commission has authorized a fuel surcharge under Special Permission No. 28208. The surcharge has been decreased to $.70 per trip for each paying passenger and is effective on October 3, 2005. The fuel surcharge shall terminate on June 12, 2006.''

   7.  Paratransit and airport transfer motor carriers shall notify the public by placing a notice in all vehicles, which shall read: ''The PA Public Utility Commission has authorized a fuel surcharge under Special Permission No. 28208. The surcharge has been decreased to $1.55 per trip for each paying passenger and is effective on October 3, 2005. The fuel surcharge shall terminate on June 12, 2006.''

   8.  The Secretary of this Commission shall duly certify this order and deposit same with the Legislative Reference Bureau for publication in the Pennsylvania Bulletin.

JAMES J. MCNULTY,   
Secretary

[Pa.B. Doc. No. 05-1930. Filed for public inspection October 14, 2005, 9:00 a.m.]


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