BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION


In The Matter of a Petition Requesting Exception to Commission Rules and 
Allowing Temporary Discontinuance 
of Commercial Ferry Service,

APPLIED TECHNICAL SYSTEMS, 
BC-119,
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		DOCKET TS-971722
		
		ORDER GRANTING   TEMPORARY DISCONTINUANCE 
		OF SERVICE AUTHORIZED 
		UNDER CERTIFICATE, WITH  CONDITIONS
		
  On December 1, 1997, the Commission received a petition from Applied 
Technical Systems, BC-119. The petition requests that the Commission grant an 
exception to WAC 480-51-130, and allow Applied Technical Systems to 
discontinue, until 1999, providing passenger service authorized under its 
certificate. Applied Technical Systems currently holds authority to provide 
commercial ferry passenger service between Bremerton and Poulsbo via Keyport.   
WAC 480-51-130 provides that:  

No certificate holder shall discontinue the service authorized under its 
certificate and set forth in its filed time schedule without first having given 
to the commission and to the public, at least fifteen days' notice, in writing, 
of its intention to discontinue such service, and without having secured the 
commission's permission.  The commission shall not grant permission for 
discontinuance of service for periods exceeding twelve months.

  The petition explains that Kitsap County Transit subsidized Applied Technical 
Systems for the first two seasons of operation.  The Transit Board recently 
decided, however, to discontinue any further subsidy.  Without the subsidy the 
Applied Technical Systems is unable to operate the ferry at a break-even 
condition, thus harming current and future viability as a common carrier.

  The petition further stated that the City of Bremerton waterfront area is to 
be redeveloped into a complex called Sinclair Landing.  The complex will be 
supported by a new Washington State ferry terminal in Bremerton and will 
consist of shops, museums, theaters, condominiums,  and major outlet stores.  
The carrier believes that the redevelopment will result in large numbers of 
shoppers and tourists to the Bremerton area. Applied Technical Systems 
anticipates new opportunities to provide service in its certificated area, 
particularly to the marine museum in Keyport, and believes it will be called 
upon to transport a larger number of tourists to Poulsbo.  Applied Technical 
Systems speculates that it will then be able to operate at a profit even 
without the Kitsap County subsidy.  Applied Technical Systems therefore 
requests the Commission allow it to discontinue service until the Sinclair 
Landing development is complete.

  Pursuant to review of the petition, its accompanying documentation, and staff 
investigation, the Commission finds that granting a temporary discontinuance of 
service at this time is warranted.  The Commission also finds, however, that 
allowing a discontinuance for the length of time requested by Applied Technical 
Systems may not be in the public interest.  The Commission will, instead, grant 
a twelve-month discontinuance.  Applied Technical Systems may request 
extensions to that discontinuance should circumstances continue to support such 
action.  It will be Applied Technical Systems’ responsibility to apply to the 
Commission for extension at least 60 days prior to the expiration of the 
discontinuance authorized herein.  That filing must be accompanied by data that 
details the progress of the Sinclair Landing Development and updated 
information as to the date that Applied Technical Systems anticipates return to 
regular service.  Additional information may be requested by Commission staff 
upon receipt of any petition for extension.

  Further,  the Commission will impose a condition that provides for passenger 
service should an immediate and urgent need arise.  Under this condition should 
an immediate need arise for commercial ferry service, Applied Technical Systems 
must be prepared to resume service to meet those needs.  If Applied Technical 
Systems cannot, or will not, resume service the Commission will consider that 
it has waived interest in its commercial ferry certificate.  The Commission 
will then institute proceedings to cancel Applied Technical Systems’ 
certificate and to grant authority to another carrier who is prepared to meet 
the needs of the traveling public.


O R D E R


  IT IS ORDERED That:

  (1)  The Commission hereby grants to Applied Technical Systems a temporary 
discontinuance of the service provided for under its commercial ferry 
certificate, BC-119.

  (2)  Said discontinuance period to begin January 1, 1998, and to expire 
December 31, 1998.

  (3)  Applied Technical Systems may apply to the Commission to extend said 
period of discontinuance by filing a petition for same which fully describes 
the need for continued discontinuance of service, progress of the Sinclair 
Landing Development plan, and updated estimates of the date upon which the 
company anticipates return to regular service.  Said petition must be filed at 
least 60 days prior to the expiration date of the current discontinuance. 

  (4) Should an immediate, urgent need arise for commercial ferry passenger 
service in the territory authorized by BC-119, Applied Technical Systems must 
return to service to meet that need.  In the event that Applied Technical 
Systems cannot, or will not, provide such service, the Commission shall 
consider that Applied Technical Systems has waived interest in its 
certificate.  The Commission will institute a proceeding to cancel the 
certificate and to grant authority to a common carrier who is prepared to meet 
the needs of the traveling public.  

  DATED and signed at Olympia, Washington this        day of January, 1998.

  WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION



       PAUL CURL, Acting Secretary