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PA Bulletin, Doc. No. 96-1694



Creation of 2% Fuel Surcharge; S. P. 28201

[26 Pa.B. 4813]

Commissioners Present:  John M. Quain, Chairperson; Lisa Crutchfield, Vice Chairperson; John Hanger; David W. Rolka; Robert K. Bloom

Public meeting held
September 19, 1996


By the Commission:

   Tristate Household Goods Tariff Conference, Inc., (Tristate) a tariff publishing agency, representing almost 275 PUC certificated first proviso household goods carriers is petitioning this Commission to continue to implement a 2% fuel surcharge as a result of the sudden and continued escalation of fuel costs still being experienced by its members in the moving industry.

   The 2% fuel surcharge approved by the Commission at SP 28200 expired on September 11, 1996; however, in light of the volatile situation in Iraq, Tristate avers the stability of fuel prices is uncertain and diesel fuel costs have not declined since June of 1996. Therefore, Tristate is petitioning the Commission to approve the 2% fuel related surcharge, in order to recoup increased fuel costs for an additional 90 days, until fuel prices stabilize and fuel cost increases can be filed under the regular rate increase procedure.

   Tristate has compiled data from its members indicating that fuel prices in Pennsylvania have increased an average 15% per gallon, since June 1, 1996. The average cost at the pump in Pennsylvania is $1.257 per gallon as of September 3, 1996. Further, the average cost of fuel to total line-haul revenue ranges from 7% to 12%; however, Tristate is only seeking permission to temporarily assess a 2% fuel related surcharge on its line-haul charges.

   On interstate shipments of first proviso household goods, in use, the American Movers Conference/Household Goods Carriers' Bureau sought and received approval by the Department of Transportation to levy a 2% fuel surcharge that became effective May 7, 1996, with an expiration date of May 7, 1997.

   In order to prevent financial hardships, it is imperative that these household goods carriers be afforded an opportunity to adjust rates to offset unanticipated fuel expenditures; Therefore, It Is Ordered That:

   1.  Tristate member household good carriers rendering service under authority of this Commission may establish a 2% fuel surcharge on 1 day's notice under Special Permission No. 28201, and shall be published in accordance with all other tariff rules of this Commission.

   2.  Upon determination by the Commission that the price of fuel has stabilized, thereby allowing Tristate carriers to seek rate relief through normal filing procedures, the Commission will issue an order to eliminate the 2% fuel surcharge.

   3.  The surcharge be effective for a 30-day period with carriers being permitted to file for two additional 30- day extension periods if conditions warrant it.

   3.  Upon approval by this Commission the Secretary shall duly certify this order and deposit same with the Legislative Reference Bureau for publication in the Pennsylvania Bulletin.


[Pa.B. Doc. No. 96-1694. Filed for public inspection October 4, 1996, 9:00 a.m.]

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