PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON

Transcription

1 PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON At a session of the PUBLIC SERVICE COMMISSION OF WEST VIRGINIA in the City of Charleston on the 21" day of December CASE NO. MC G.O (RE-OPENED) IN THE MATTER OF EMERGENCY FUEL SURCHARGE FOR CERTIFICATED COMMON CARRIERS OF PASSENGERS AND PROPERTY OF MOTOR VEHICLE. COMMISSION ORDER The Commission approves decreased fuel cost surcharges. The surcharges authorized by this order will be effective January 1, 2019, through June 30, 2019, unless otherwise ordered by the Commission. Staff will continue to monitor fuel prices and update the Commission as the situation warrants, including a revised recommended surcharge if there is an increase or decrease in fuel prices greater than twenty percent. The Order also requires each solid waste carrier to include a calculation of its new residential rate in the fuel surcharge supplement to its tariff. BACKGROUND The Commission has from time to time previously approved and implemented fuel surcharges for common carriers by motor vehicle.' The surcharges authorized by the June 26, Commission Order are in effect through December 3 1, On December 18, 2018, Commission Staff filed a Further Final Joint Staff Memorandum that was treated as a petition to reopen this proceeding to conform fuel surcharges to current market prices. Staff recommended decreased surcharges based on new data. In this latest memorandum, Staff explained that it reviewed historical gasoline and diesel pricing data from the West Virginia Oil Marketers and Grocers Association and from the American Automobile Association (AAA). Staff explained further that it I Commission Orders entered on March 12, 2004, June 28, 2004, December27, 2004, June27,2005, September 15, 2005, March 24, 2006, June 19, 2006, December 20, 2006, July 6, 2007, December 28, 2007, April 30, 2008, June 25, 2008, December 19, 2008, July 1, 2009, December 29, 2009, June 29, 2010, December 28, 2010, May 18, 201 1, December 22, 201 1, June 26,2012, December 21, 2012, June 26, 2013, December 20, 2013, June 24, 2014, December 30, 2014, June 26, 2015; December 16, 2015, June 24, 2016; December 27, 2016; June 28,2017; December 27,2017; and June 26,2018.

2 reviewed historical data from the Energy Information Association (EIA) and price forecasts for January 2019 through July Staff used historical state and ElA price data to adjust the EIA forecasts to be specific to West Virginia. The resulting forecasted West Virginia average price for the period of January 2019 through July 2019 is $2.46 per gallon for regular grade gasoline and $3.00 per gallon for diesel fuel. This is a decrease from the previously forecasted prices of $2.87 per gallon for regular grade gasoline and $3.25 per gallon for diesel fuel for the period of July 2018 through December Staff confirmed the extent to which fuel prices have decreased. Staff specifically recommended that the Commission enter an order approving the following decreased surcharges: 1) certificated carriers of solid waste to implement an across-the-board maximum fuel surcharge of 4.96% (instead of the current maximum surcharge of 5.72%); 2) taxi and limousine operators to implement an across-the-board maximum surcharge of 11.02% (instead of the current maximum surcharge of 14.96%); and 3) wrecker operators to implement an across-the-board maximum surcharge of 5.32% for third-party tows (instead of the current maximum surcharge of 6.08%). (Staff Memorandum, December 18, 20 18). Staff also noted in its discussion that taxicab companies should be authorized to reflect the surcharge (i) by rounding, to the nearest cent, the surcharge for the initial (flag drop) part of the trip and (ii) by rounding, to the nearest cent, the charge for each additional distance increment of the taxicab trip. Staff noted further that the recommended fuel surcharge to be implemented by wrecker operators would apply only to charges for the actual tow or equipment used that is powered by fuel. The surcharge should not be applied to tariff charges that are not related to equipment powered by fuel, such as storage or additional manpower riding in the vehicle. Staff recommended that the surcharges remain in effect through June 30, 2019, or until further Commission Order. Staff also reiterated the recommendation from its May 23, 2018 filing2 recommending that the Commission order all solid waste carriers 2 On May 23, 2018, Staff filed a Petition to Reopen for Amendment to Attachment A. Staff requested that the Attachment A form be amended to include a space for certificated solid waste carriers 2

3 that choose to participate in this fuel surcharge to fill out sheets requesting the fuel surcharge and providing Staff with their current Residential Tariff rates, the amount of the fuel surcharge, and their new Residential rate. DISCUSSION In the past, the Commission has recognized that fuel costs of motor carriers are a significant portion of total costs, are sometimes volatile, and are largely outside the control of the motor carriers. In view of these characteristics of fuel costs, the Commission established an expedited process to review changes in fuel costs, both upward and downward, and to incorporate those changes in motor carrier rates without the need for full rate cases. The Commission has modified its procedure from time to time, leading to the present simplified procedure employed in General Order See e.%, General Orders 56.1, 56.2, and The present methodology is based on the use of an historical level of average fuel costs previously built into rates, relative to the revenue of the major categories of motor carriers subject to the rate making jurisdiction of the Commission: Trash Haulers, Taxicabs, and Towing initiated by non-owners of towed vehicles (Third-party Tows). Each January and July, the Commission determines projected fuel costs over a future six-month period and calculates a fuel cost recovery rate surcharge increment relative to the changes in projected fuel cost from the historical base level of fuel costs. Most recently, on June 26, 2018, the Commission entered an Order authorizing fuel cost recovery surcharges to remain in effect through December 31, The surcharges authorized in this Order will be effective from January 1, 2019, through June 30, 2019, or until further Commission Order. Staff should continue to monitor fuel prices as it always has and the Commission will likewise continue to make adjustments in its semi-annual General Orders. If, between our semi-annual orders, there is a twenty percent or greater increase or decrease in the price of either regular grade gasoline, diesel fuel, or both, Staff should file a further to make the proper calculation to ensure the carriers are correctly charging the emergency fuel surcharge and are only charging a single fuel surcharge. For example, Staff stated that if a solid waste carriers current residential tariff rate is $15 per month, and the new fuel surcharge is four percent, the carrier should be required to acknowledge acceptance of the four percent surcharge, and then calculate ($1 5 x.04 = $0.60) a fuel surcharge of $0.60. Staff stated that the carrier should also show that the residential rate of $1 5 plus the new fuel surcharge of $0.60 totals $15.60, the residential rate to be charged. Staff stated that performing and showing these calculations will help prevent carriers from incorrectly applying the fuel surcharge as well as cumulatively adding the new fuel surcharge to the fuel surcharge previously authorized. 3

4 memorandum requesting a reopening of this case and recommend adjustments to the fuel surcharges based on that increase or decrease in price. As required in the past, carriers that choose to implement these discretionary surcharges may not implement any surcharge set forth in this Order prior to filing with the Commission Tariff Office three copies of the form reflecting the fuel surcharge supplement applicable to the tariff of the carrier. Carriers may use the applicable of the two forms attached to this Order designated as Attachment A. The Commission will direct the Executive Secretary to open a separate docket for this fuel surcharge order for the purpose of receiving the returned Attachment A forms. The docket for this fuel surcharge order will be MCFS 2019A. The Attachment A forms should also be included in the current respective tariffs as an addendum. The Fuel Surcharge Supplement to Carrier s Tariff appended to this Order as Attachment A, page 1, has been modified to include a space for solid waste carriers to calculate the appropriate residential rate. In the past, incorrect calculations of this rate resulted in cumulative errors and the need for refunds. The information collected through the modified form will help Staff and the Commission to detect errors. FINDINGS OF FACT 1. The Commission has from time to time previously approved and implemented fuel surcharges for common carriers by motor vehicle. 2. The surcharges authorized by the most recent Commission Order are in effect through December 3 1, 201 8, or until further Commission Order. 3. On December 18, 2018, Staff filed a Further Final Joint Staff Memorandum, recommending the decreased fuel surcharges set forth above. 4. The forecasted West Virginia average price for the period of January through June 2019 is $2.46 per gallon for regular grade gasoline and $3.00 per gallon for diesel fuel. This is a decrease from the previously forecasted prices of $2.87 per gallon for regular grade gasoline and $3.25 per gallon for diesel fuel for the period of July through December The surcharges in this matter are based on historical information that needs to be refreshed on a periodic basis. 4

5 CONCLUSIONS OF LAW 1. The Staff recommendations for the decreased fuel surcharges are reasonable and should be approved. 2. No surcharge is to take effect unless and until the carrier files three copies of the form reflecting the fuel surcharge supplement applicable to the tariff of the carrier with Commission Tariff Office. 3. The Staff recommendation that taxicab companies should be authorized to reflect the surcharge (i) by rounding, to the nearest cent, the surcharge for the initial (flag drop) part of the trip and (ii) by rounding, to the nearest cent, the charge for each additional distance increment of the taxicab trip, is reasonable and should be approved. 4. The Staff recommendation that the fuel surcharge to be implemented by wrecker operators would apply only to the actual charges for the tow or equipment used that is powered by fuel and, therefore, should not be applied to tariff charges that are not related to equipment powered by fuel, such as storage or additional manpower riding in the vehicle, is reasonable and should be approved. 5. Based on the forecasted decreased costs of regular grade gasoline and diesel fuel, the following decreased fuel surcharges should be approved for common carriers by motor vehicles: Haulers of solid waste and/or infectious medical waste 4.96% Transporters of passengers, including, but not limited to, taxicab and limousine companies % Wrecker companies for towing services with respect to their rates for third-party tows 5.32% 6. Because fuel surcharges are intended to address volatility in fuel prices, if between our semi-annual orders in this case there is a twenty percent or greater increase or decrease in the price of either regular grade gasoline, diesel fuel, or both, it is reasonable to require Staff to file a further memorandum requesting a reopening of this case and recommend revised surcharges based on that increase or decrease in price. 7. The Fuel Surcharge Supplement to Carrier s Tariff form should be modified to show calculations of the solid waste carrier Residential rate. 5

6 ORDER IT IS THEREFORE ORDERED that this proceeding is reopened. IT IS FURTHER ORDERED that the following decreased fuel surcharges are approved for common carriers by motor vehicles: Haulers of solid waste and/or infectious medical waste 4.96% Transporters of passengers, including, but not limited to, taxicab and limousine companies 11.02% Wrecker companies for towing services with respect to their rates for third-party tows 5.32% These surcharges apply as of January 1, 2019, to all tariff rates on file for the motor carriers set forth above and to all state-wide rates charged by wrecker companies for third party tows, and will remain in effect through June 30, 2019, or until further Commission Order. These surcharges do not apply to contract carriers, nor do they apply to Medicaid rates. IT IS FURTHER ORDERED that taxicab companies are authorized to reflect the surcharge (i) by rounding, to the nearest cent, the surcharge for the initial (flag drop) part of the trip and (ii) by rounding, to the nearest cent, the charge for each additional distance increment of the taxicab trip. IT IS FURTHER ORDERED that wrecker operators are authorized to apply the fuel surcharge only to the actual charges for the tow or equipment used that is powered by fuel. IT IS FURTHER ORDERED that carriers may not implement any of the surcharges set forth in this Order prior to filing with the Commission Tariff Office three copies of the form reflecting the fuel surcharge supplement applicable to the carrier. Carriers may use the applicable of the two forms attached to this Order and designated as Attachment A. IT IS FURTHER ORDERED that if between our semi-annual orders in this case there is a twenty percent or greater increase or decrease in the price of either regular grade gasoline, diesel fuel, or both, Staff shall file a further memorandum requesting a 6

7 reopening of this case and recommend revised surcharges based on that increase or decrease in price. IT IS FURTHER ORDERED that the Executive Secretary of the Commission will open a separate docket to receive the Attachment A forms filed for this fuel surcharge Order. The Executive Secretary will place of a copy of this Order in the docket that is opened to receive the Attachment A forms. IT IS FURTHER ORDEED that, upon entry hereof, this proceeding shall be removed from the Commission docket of active cases. IT IS FURTHER ORDERED that the Executive Secretary of the Commission serve a copy of this order by electronic service on all parties of record who have filed an e-service agreement, and by United States First Class Mail on all parties of record who have not filed an e-service agreement, and on Commission Staff by hand delivery. A True Copy, Teste, Ingrid Ferrell Executive Secretary JJWISC mcgo5641. doc 7

8 ATTACHMENT A Page 1 of2 FUEL SURCHARGE SUPPLEMENT TO CARRIER S TARIFF DATE NAME OF MOTOR CARRIER ADDRESS TELEPHONE NO. CONTACT PERSON CERTIFICATE NO. I hereby file a fuel surcharge supplement to the tariff of the above carrier, in the amount of %, as authorized by the Public Service Commission of West Virginia, in M.C. General Order No dated December 21, I understand that this surcharge will expire by the terms of the Commission order, on June 30, 2019, unless the surcharge is extended by further order(s) of the Commission. I fh-ther understand that the fuel surcharge does not take effect until this form is received by the Commission and properly filed. I certify that the legal entity or individual actually responsible, by contract or otherwise, for the payment of fuel charges will receive the full increase in revenue to be derived from the proposed surcharge. Solid Waste Carriers Only: Current Authorized Residential Tariff Rate New Fuel Surcharge Amount (Residential Tariff Rate times New Fuel Surcharge Percentage) New Residential Rate (Residential Tariff Rate plus New Fuel Surcharge Amount) Taxicab Companies Only: New Rates Reflecting the Applicable Surcharge Rounded to the Nearest Cent. Initial Charge (Flag Drop) Additional Distance Increments (describe) Signature Position with Carrier

9 ATTACHMENT A Page 2 of 2 FUEL SURCHARGE SUPPLEMENT TO WRECKER COMPANY S TARIFF DATE NAME OF MOTOR CARRIER ADDRESS TELEPHONE NO. CONTACT PERSON I hereby file a fuel surcharge supplement to the tariff of the above carrier, in the amount of 5,32%, as authorized by the Public Service Commission of West Virginia, in M.C. General Order No dated December 21, I understand that this surcharge will expire by the terms of the Commission order, on June 30, 2019, unless the surcharge is extended by further order(s) of the Commission. I further understand that the fuel surcharge does not take effect until this form is received by the Commission and properly filed. I certify that the legal entity or individual actually responsible, by contract or otherwise, for the payment of fuel charges will receive the full increase in revenue to be derived from the proposed surcharge. Signature Position with Wrecker Company