January 7, 2011
Commission Releases Preliminary Determination of BC Ferries’ Return on Equity for the Third Performance Term
The Commission is currently working to make a preliminary determination of price caps for BC Ferries, which will govern ferry fares for the third performance term from 2012 to 2016. Those price caps must allow BC Ferries to earn a certain annual percentage rate of return on equity. The rate is to be established by the Commission within parameters stated in the Coastal Ferry Act. In Memorandum 41 of January 4 2011, the Commission set a 12.73% preliminary rate of return on equity to be used in setting preliminary price caps.
This figure is down from 13.16% which was the return used in setting price caps for the current (second) performance term, which ends March 31 2012.