PENNSYLVANIA PUBLIC UTILITY COMMISSION January 2006 Review of Fuel Cost Recovery Surcharge; S. P. 28208 [36 Pa.B. 454] Public Meeting held
January 12, 2006Commissioners 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. 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 Public Meeting on September 9, 2005. Recognizing that the price of fuel is likely to fluctuate in the future months, the Commission also ordered that the temporary fuel surcharge was to be evaluated on a monthly basis until further notice to ensure that the surcharge is appropriately adjusted to the price of fuel. Though prices continue to fluctuate, the market no longer experiences the dramatic changes which necessitated monthly evaluations; therefore, evaluations will be performed on a quarterly basis. The last adjustment was made by the Commission at Public Meeting on December 1, 2005.
The most recent data for the week ending January 9, 2006 indicates that the price of gasoline is $2.46 per gallon, which is an increase of $.23 or 10% from the average price for November 28, 2005. The effect of this increase results in an average cost of fuel per trip of $1.11 for call or demand operations. The average cost of fuel per trip for paratransit and airport transfer operations is $2.57. Considering this increase, the surcharge shall be adjusted to $.50 per trip for each paying passenger for call or demand service and $1.15 per trip for each paying passenger for airport transfer and paratransit services, effective January 16, 2006.
The changes which have occurred in the Fuel Cost Recovery Surcharge at S. P. 28208 are summarized in the following table.
Historical Charges for Fuel Cost Recovery
Surcharge at S. P. 28208Call or Airport Effective Date Demand Transfer/Paratransit June 14, 2004 $.30 $ .70 September 2, 2005 $.70 $1.55 September 12, 2005 $.90 $2.00 October 3, 2005 $.70 $1.55 October 31, 2005 $.55 $1.25 December 5, 2005 $.40 $ .95 January 16, 2006 $.50 $1.15 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 the increase 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 increase the surcharge to $.50 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 increase the surcharge to $1.15 per trip for each paying passenger.
4. The increases be approved to become effective January 16, 2006.
5. The Fuel Cost Recovery Surcharge will be reviewed on a quarterly basis with the next review taking place at the Public Meeting of April 6, 2006.
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 increased to $.50 per trip for each paying passenger and is effective on January 16, 2006. 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 increased to $1.15 per trip for each paying passenger and is effective on January 16, 2006. 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. 06-161. Filed for public inspection January 27, 2006, 9:00 a.m.]
