Agenda Date:    March 22, 2000
Item Number:

Docket:         TC-000371

Company Name:   Wickkiser International Companies, Inc., C-933
               (Wickkiser)

Staff:            Bob Colbo, Transportation Program Staff

Recommendation:

Approve the temporary fuel surcharge of $0.25 per one-way passenger and $0.50 
per round-trip passenger for Wickkiser in Docket TC-000371 on an LSN basis, to 
become effective March 23, 2000,and expire April 30,2000, as filed.

Discussion

On March 15, 2000, the above named carrier filed a temporary fuel surcharge 
application proposed in Docket TC-000371 to become effective March, 23, 2000, 
via LSN application.  The amount of the surcharge is $0.25 per one-way 
passenger fare and $0.50 per round trip fare.  The surcharge will remain in 
effect until April 30,2000, at which time it will either be adjusted to reflect 
the then current price of fuel or eliminated.  It is anticipated that this 
monthly review process will continue until fuel prices return to January, 2000, 
levels.  This is the first filing reflecting general concern throughout the 
garbage and passenger hauling industries about the recent increase in fuel 
prices.

This carrier has been in informal contact with the staff since mid 1999 
regarding what approach the staff might take to deal with high fuel prices.  In 
view of such increases, particularly since January, the staff is now in the 
final process of formalizing a uniform approach that will apply to all carriers 
within each industry group.  These procedures will be distributed to all 
regulated companies to serve as guidelines on how to apply for and justify fuel 
supplements.

Wickkiser’s approach is identical to the proposed bus industry approach that 
the staff is developing.  That process involves relating historic 1999 fuel 
expense to total revenue as a percentage, then calculating the current increase 
in fuel expense from January, 2000, to the most recent price, again as a 
percentage.  January was picked as the base since our review of various fuel 
indices indicated that was when the large recent price increases began.  Cost 
increases occurring throughout 1999 have generally been absorbed by the 
carriers without complaint.

Wickkiser’s 1999 fuel expenses were $122,752 on a revenue base of $2,295,352 
(5.35 percent of revenues and an average price of $1.08 per gallon).  The 
average January, 2000, fuel price was $1.21/gallon.  The most recent fuel price 
is $1.45 per gallon for a percentage increase since January of 19.83 percent.  
The combined product of the two percentages is 1.06% (.0535 x .1983 = 
1.06%),the amount that the carrier is proposing to recover as an offset for 
recent increased fuel expenses.  The annual impact to customers will be 
approximately $24,340($122,752 x 19.83 percent.)  When rounded to the nearest 
quarter for ease of making change etc., the amount per one-way fare is $0.25.  
Each month thereafter the supplement will be adjusted based on the most recent 
fuel price.  This monthly update process will continue until the incremental 
increases since January, 2000, are less than 1 percent of revenue.  At that 
time, the supplement will be canceled permanently, since the overall impact 
will be minimal.

It is therefore recommended that the Commission approve the temporary fuel 
surcharge of $0.25 per one-way passenger and $0.50 per round trip passenger for 
Wickkiser in Docket TC-000371 on an LSN basis, to become effective March 23, 
2000, and expire
April 30,2000, as filed.