Rulings Index

Below is a list of rulings made by the Commission in date order (i.e. orders, official authorizations, decisions, determinations and declarations).

Order or Memo Name and Section of Coastal Ferry Act (where applicable) Date Content
Order 17-03 under section 55(1) 5
April
2017
Section 55(1) of the Coastal Ferry Act, and Capital Expenditures to Provide Mid-Coast Ferry Service Proposed by British Columbia Ferry Services Inc.
Order 17-02 under section 55(5) and section 67 2
March
2017
Section 55(5) and Section 67 of the Coastal Ferry Act, and Establishment of the Criteria for a Major Capital Expenditure
Order 17-01A under section 55(2) 27
February
2017
Approval of a Major Capital Expenditure for Two Minor Class Vessels
Order 17-01 under section 55 (2) 27
February
2017
A Major Capital Expenditure for Two Minor Class Vessels
Order 16-02 under section 55(2) 21
September
2016
Approval of a Major Capital Expenditure for the Fare Flexibility and Digital Experience Initiative
Order 16-01 under section 45.1 6
September
2016
Determinations and Reasons regarding BC Ferries’ Drop Trailer Service
Order 15-03A under section 41.1 28
September
2015
Establishment of Fuel Deferral Accounts
Order 15-03 under section 40 and 41 16
September
2015
The Final Decision on Price Caps for the Fourth Performance Term
Report on the Final Price Cap Decision for PT4 16
September
2015
Report on the Final Price Cap Decision for the Fourth Performance Term
 Order 15-02 under section 40 and 41 18
March
2015
The Preliminary Decision on Price Caps for the Fourth Performance Term
 Order 15-01 under section 55(2) 2
February
2015
A Major Capital Expenditure for The Fare Flexibility and Digital Experience Initiative
Condition Letter for Order 15-01 September 25, 2015
Order 14-03B under section 55(2) 29
January
2016

Approval of a Major Capital Expenditure for Mid-Life Upgrades to the Spirit Class Vessels

Order_14-03 under section 55 re: BCFS’s proposal for A Major Capital Expenditure for
Mid-Life Upgrades to the Spirit Class Vessels.
24
November 2014
 Approval of capital expenditure with conditions.
Condition Letter for Order 14-03 February 1, 2016
Order_14-02 under section 40 and section 64 re: BCFS’s submission of a Capital Plan. 29
September 2014
Submission of BCFS’s 10 year Capital Plan.
Commisson Memorandum 45 under section 40 & 41 re: Management of Regulatory Account Balances – Policy Proposal 20
March 2014
BC Ferries Management of Regulatory Account Balances Proposal Rejected
Order_14-01A under section 55 re: BCFS’s proposal for a major capital expenditure for a new cable ferry and associated infrastructure to operate on Route 21 (Buckley Bay-Denman Island) 20
February 2014
Approves the total amount of the major capital expenditure for the cable ferry project
Order 14-01 under section 55 re: Commissioner’s review and conditions for BCFS’s proposal for a major capital expenditure for a new cable ferry and associated infrastructure to operate on Route 21 (Buckley Bay-Denman Island) 20
February 2014
Approves BCFS’ proposed major capital expenditure for a cable ferry subject to five conditions
Condition Letter for Order 14-01 January 22, 2016
Order 13-01A under s.55(2) re:  BCFS’s proposal for three new Intermediate Class Vessels 19
July 2013
A Major Capital Expenditure for Three Intermediate Class Vessels Proposed by BC Ferry Services Inc.
Order 13-01 under s.55 re: BCFS’s proposal for three new Intermediate Class Vessels 19
July 2013
Approves BCFS’s proposed major capital expenditure subject to four conditions.
Order 12-02A under s.40 re: service levels adjustments 15
April 2013
Amends Order 12-02 to reflect Coastal Ferry Services Contract changes.
Order 12-03A under s. 41.1(1) re: reporting timeline change request 28 February 2013 Changes the reporting requirement for the submission of plans and information provided by BC Ferries.
Order 12-04 under s. 55 re: major capital expenditure critera 1
October 2012
Sets the threshold for major capital expenditure approval by the commission at $30 million for vessels and terminals, and at $5 million for specified upgrades to information technology systems
Order 12-03 under s. 41.1 re: fuel deferral accounts 1
October 2012
Sets out the terms and conditions of the use of fuel deferral accounts by BC Ferries. Click here for reasons for commissioner’s deliberations.
Order 12-02 under s. 40 re: final price cap decision for Performance Term Three 1
October 2012
Allows for increases to the price cap indexes for all routes groups as follows: 4.1% effective April 1, 2013; 4.0% effective April 1, 2014; and 3.9 per cent effective April 1, 2015.  Click here for reasons for commissioner’s deliberations.
Order 12-01 under s. 43 re: variation of service on route 30 due to damaged berth at Duke Point Terminal 4
January 2012
In view of the extraordinary situation and the temporary period of closure of the Duke Point Terminal, the commission authorizes the reduction of service for up to six months with conditions.
Order 11-03 under s. 38.2 re: revised methodology for calculating average ferry fares for comparing price caps 22
October 2011
Eliminates the possibility of a price index drift that could result in an erroneous finding that the company was not in compliance with the Commission’s price cap.
Order 11-03B under s. 45.1 re: a request by BC Ferry Services Inc. for reconsideration and variance of the quarterly application of the minimum allowed average tariff (MAAT) 31
October 2011
Declines the company’s request as conditions do not presently exist to warrant a consideration. As an appeal is pending, it is also premature for a reconsideration to take place on only one aspect of the MAAT.
Order 11-02 under s. 40 re: preliminary price caps for performance term three 31
March
2011
Preliminary decision is: for the major routes and Route 3, a 4.15% price cap increase on April 1 each year from 2012 to 2016; for the northern and minor route groups, a 8.23% increase on the same dates.
Order 11-01 and Memorandum 42 re: unfair competitive advantage under section 45.1

Reasons for Determination for Order 11-01, Drop Trailer Services April 29, 2011

7
February
2011
Finds the BC Ferries is pricing its drop trailer services on its major routes at less than direct cost plus an appropriate proportion of indirect cost, and that BC Ferries has unfair competitive advantage; sets a minimum tariff for the service.
Commission Memorandum 41 re: return on equity for Performance Term Three 4
January
2011
Sets 12.73% per annum as the rate of return on equity for BC Ferries, to be used in setting preliminary price caps for the third performance term.
Order 10-01 re: unfair competitive advantage under section 45.1 15
November
2010
Releases two documents with information re: BC Ferries’ drop trailer services on its major routes, with reasons, following an exchange of correspondence among the Commission, BC Ferries and a competitor for drop trailer business.
Commission Memorandum 38 re: complaints handling process under section 45.2 9
September
2010
Asks BC Ferries to identify the process it intends to use to handle customer complaints and indicates features required to earn  Commission approval.
Commission Memorandum 37 re: unfair competitive advantage under section 45.1 19
July
2010
Finds BC Ferries’ drop trailer service on its major routes to be a competitive service under the Act, asks BC Ferries to provide information.
Memorandum 32 re: cable ferry project feasibility costs and risk 26
January
2009
Confirms agreement on treatment of cable ferry costs in Performance Term Three
Order 08-01 under section 43 authorizing temporary northern service reduction 24
October
2008
Authorizes temporary service reduction on northern routes 10 and 11 through February 2009 needed to modify terminals in order to dock a new vessel, the Northern Expedition.
Commission Memorandum 24A modifying Memorandum 24 under s.40 22
July
2008
Authorizes fuel surcharges starting August 1 2008: 10.3% on the three major routes; 17.6% on the 18 minor routes; 9.2% on the Horseshoe Bay-Langdale route.
Commission Memorandum 27 re: compliance with price caps as set out in Order 05-01 17
January
2008
Permits BC Ferries’ fares to exceed the price cap for two (instead of one) consecutive quarters for one time only, at March 31 2008, and explains why.
Order 07-01A under section 40 amending Order 07-01 re: final decision on price caps for performance term two 21
December
2007
Rectifies an error in Order 07-01 below which incorrectly adjusted for the cost of new vessels on the major routes. Fare cap on major routes rises by 7.3% (not 6.4%) April 1 2008, other route groups by 4.0%. Subsequent annual increases through April 1 2011 relate to consumer price inflation, being 3.7% (not 3.0%) and 7.1% respectively if consumer price index increases at 2% per year.
Commisson Memorandum 26 under section 40 re: CPI calculation for price caps 17
December
2007
Details how the figure for the increase in the consumer price index, required in the annual price cap calculation for Order 0701A above, should be obtained.
Commission Memorandum 25 under section 41 (2)(b) re: return on equity 14
December
2007
Details the Commission’s final ruling of 13.16% for the allowed return on equity for performance term two for BC Ferries.
Order 07-01 under section 40 re: price caps for performance term two 18
September
2007
Note: this Order was amended on 21 December 2007 – see above. Fare cap on major routes rises by 6.4% April 1 2008, other route groups by 4.0%. Subsequent annual increases through April 1 2011 relate to consumer price inflation, being 3.0% and 7.1% respectively if consumer price index increases at 2% per year.
Preliminary decision on price caps for Performance Term Two under section 40 30
March
2007
Subject to final ruling by Sept. 30 2007, fare cap on major routes rises by 5.4% April 1 2008, other route groups by 3.6%. Subsequent annual increases through April 1 2011 relate to consumer price inflation being 3.0% and 6.7% respectively if consumer price index increases at 2% per year.
Commission Memorandum 24 re: fuel surcharge / rebate mechanism in Performance Term Two under section 40 30
March
2007
Automatic adjustment mechanism for fuel surcharges or rebates from 2008 through 2012 under which farepayers and BC Ferries share cost of fuel price fluctuations up and down.
Commission Memorandum 20 under section 41(2)(b) re: return on equity for BC Ferries 17
Sept
2006
Makes preliminary ruling that BC Ferries’ pre-tax rate of return on equity to be used in setting fare caps for the second performance term (starting April 1, 2008) will be 14% p.a.
Order 06-07 under section 55 re: capital spending on terminals for northern routes 17
Sept
2006
Declares $33.4 million in terminal alterations to meet design of the new northern vessel (see Order 06-06 below) to be reasonably required.
Order 06-06 under section 55 re: a newly built vessel for the north 14
August
2006
Declares a newly built northern replacement vessel ready for service in summer 2009 to be reasonably required, at a cost of $199.7 million.
Order 06-05 under section 43 regarding service reduction on northern routes 14
July
2006
Extends a temporary and extraordinary service reduction on the north earlier authorized in Order 06-02 for the remainder of the summer, i.e. through September 30 2006, on finding BC Ferries’ search for a replacement vessel (which will not be in service before 2007) was thorough.
Order 06-04 under section 55 regarding acquisition of a used replacement vessel for the north 4
July
2006
Declares a particular used northern replacement vessel for service in summer 2007 to be reasonably required (text of Order 06-04 is to be released after purchase is completed).
Order 06-03 under section 42 regarding ferry fuel surcharges 19
June
2006
Authorizes extraordinary price cap increase of 3.2% on major route group and 9.6% on others (except Mill Bay-Brentwood Bay and Langdale-Gambier-Keats) following higher fuel price experience and outlook.
Order 06-02 under section 43 regarding service reduction on northern routes 17
May
2006
Authorizes a reduction in service from May 18, 2006 on northern routes 10 and 11 for 60 days, which may be extended following a review of BC Ferries’ search for a suitable replacement vessel for the Queen of the North.
Order 06-01 under section 43 regarding service reduction on northern routes 24
April
2006
Authorizes BC Ferries to reduce service through May 18 2006 on northern routes 10 and 11 following the sinking of the Queen of the North on 22 March 2006 with resultant loss of ferry capacity.
Order 05-06 Final under section 42 regarding ferry fuel surcharges 20
January 2006
Final Decision authorizing extraordinary price cap increases of 1.5% on the major routes and 3% on others, plus later possible increases depending on changes in future fuel prices and outlook. Orders BC Ferries to absorb all over-target fuel cost if fuel conservation targets of 1% and 2% in next two years not met; asks for fuel conservation plan.
Order 05-06 Preliminary under section 42 regarding ferry fuel surcharges 21 December 2005 Preliminary Decision to the Final 05-06 above.
Order 05-05 under section 43 of the Act regarding a temporary reduction in service 20 November 2005 Authorizes the extension to December 20 2005 of the temporary reduction in service authorized in Order 05-04 below.
Order 05-04 under section 43 of the Act regarding a temporary reduction in service 10
Sept
2005
Authorizes temporary reduction in service on Route 26 between Skidegate and Alliford Bay on the Queen Charlotte Islands to accommodate maintenance refit of the vessel MV Kwuna.
Order 05-02 Final under section 42 of the Act regarding fuel surcharges on fares 24 July 2005 Authorizes extraordinary price cap increase of 4% on the major route group and 6% on the others. Orders BC Ferries to absorb 5% of the increase in fuel costs over budget, and allows 6% interest on Deferral Account balances.
Order 05-03 under section 55 of Act 20
July
2005
Declaration that the acquisition of an intermediate class vessel on a minor route group is reasonably required and that associated capital costs will be included in setting future price caps on ferry fares.
Order 05-02 under section 42 regarding ferry fuel surcharges 24
June
2005
Preliminary Decision to the Final Order 05-02 above.
Order 05-01 regarding measurement of average ferry fares and comparison to price caps 9
February
2005
Determination of the computational methods which BC Ferries must use every quarter year for calculating: (a) an index of the average of the fares the company is currently charging for each of the seven route groups; (b) the corresponding seven indices of price caps which the average fare indices must not exceed (to avoid enforcement actions by the Commission).
Guidelines for BC Ferries for applications under section 55 December 2004 Lists the questions BC Ferries should answer if it wants to have the Commission declare a proposed capital expenditure by BC Ferries (e.g. for a ship) to be “reasonably required.” BC Ferries might make an application in order to gain assurance that the Commission will recognize the capital costs when it sets future price caps on ferry fares.
Order 04-02 regarding fuel prices and costs 28 September 2004 Authorization for BC Ferries to establish a Deferral Account for each route group to hold variations in fuel costs due to fluctuations in fuel prices about a “set price” for each group. The purpose is to stabilize BC Ferries earnings reports and help avoid temporary fuel surcharges.
Memorandum regarding Gabriola Medivac 18 September 2004 Determination that a petition by Gabriola Islanders for a ferry fare surcharge to fund after-hours medical evacuation by ferry is satisfactory assent for the surcharge; declaration that the Commission will exclude the surcharge, if made by BC Ferries on the Gabriola-Nanaimo route, from the regulated fare.
Order 04-01 under Section 55 of the Act 10
June
2004
Declaration that the acquisition of three vessels for deployment on the major route group is reasonably required and that associated capital costs will be included in setting price caps on ferry fares for the performance term starting April 1, 2008.
Order 03-01 under Section 43 of the Act 31
October
2003
Authorization for temporary reduction in service on Route 30 (between Tsawwassen and Duke Point, Nanaimo) in late November and early December 2003 and in March 2004, needed for mid-life upgrade of “C” class vessels