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-981348
		
		ORDER GRANTING   TEMPORARY DISCONTINUANCE 
		OF SERVICE AUTHORIZED 
		UNDER CERTIFICATE, WITH  CONDITIONS
		
  On January 14, 1998, the Commission issued an order in Docket
TS-971722 allowing Applied Technical Systems to discontinue providing 
commercial ferry passenger service authorized under its certificate.  The order 
resulted from a petition filed by Applied Technical Systems which stated:

  (1)  that Kitsap County Transit subsidized Applied Technical Systems for the 
first two seasons of operation.  The Transit Board subsequently 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.

  (2) 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.

  The Order in Docket TS-971722 found that granting a temporary discontinuance 
of service at the time was warranted.  The Commission also found, however, that 
allowing a discontinuance for the length of time requested by Applied Technical 
Systems might not be in the public interest.  The Commission therefore, granted 
a twelve-month discontinuance with a provision that Applied Technical Systems 
could request extensions to that discontinuance should circumstances continue 
to support such action.  The Order further stated that it would be Applied 
Technical Systems’ responsibility to apply to the Commission for extension at 
least 60 days prior to the expiration of the discontinuance authorized 
therein.  Any filing for extension 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. 

  Further,  the Order imposed a condition that requires there be available 
passenger service should an immediate and emergent 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.

  On October 21, 1998, Applied Technical Services filed with the Commission a 
petition requesting the temporary discontinuance be extended for another 
12-month period.  The petition explained that although progress has been made, 
Sinclair Landing has not been completed and ridership levels are still too low 
to be compensatory.  

  Pursuant to review of the petition the Commission finds that the 
discontinuance should be extended for an additional 12 months, subject to the 
same conditions as the previous discontinuance.


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, 1999, and to expire 
December 31, 1999.

  (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 16th day of November, 1998. 

  WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION



      CAROLE J. WASHBURN, Secretary