BCFS’ Reconsideration Request Declined

November 1, 2011
Commissioner Declines Request for Reconsideration of MAAT Quarterly Application

On February 7, 2011, the Commissioner issued Order 11-01 which sets a minimum allowed average tariff (MAAT) for the drop trailer service of British Columbia Ferry Services Inc. (BCFS) on its major routes effective April 1, 2011.

The Order also requires BCFS to report quarterly to the Commissioner on (a) quarterly total revenue from its drop trailer tariff and (b) number of vessel-feet occupied. BCFS is to ensure that the amount (a) divided by (b) shall not be less than the MAAT.

The Order further provides that when the drop trailer volume exceeds a specified rate of vessel-feet per year, or at the discretion of the Commissioner, the minimum tariff shall be re-set in light of experience with actual costs and drop trailer traffic volumes. The Order is currently under appeal by Seaspan Ferries Corporation (Seaspan) on various grounds.

On September 30, 2011, British Columbia Ferry Services Inc. (BCFS) filed a request for reconsideration of the methodology used for calculating the quarterly report with the Commissioner. BCFS submits that the Order should be varied to reflect a quarterly calculation based on a four-quarter trailing average. BCFS also proposed transitional implementation that would allow for compliance to be assessed based on data as it is accumulated throughout 2012.

The Commissioner determined that he will not reconsider the Order at this time.

Click here for details on the Commissioner’s determination.