ALJ/VDR/avs Date of Issuance 1/22/2010

Decision 10-01-027 January 21, 2010

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of the Application of California Moving and Storage Association requesting Elimination of Maximum Rate Tariff 4 Region 1 and Territories B and C for the State Purpose of Tariff Simplification. Petition to adopt, amend, or repeal a regulation pursuant to Public Utilities Code Section 1708.5.

Application 08-03-005 (Filed March 5, 2008)

DECISION REVISING MAXIMUM RATES AND
CHARGES IN COMMISSION MAXIMUM RATE TARIFF 4

Table of Contents

Title Page

DECISION REVISING MAXIMUM RATES AND CHARGES IN COMMISSION MAXIMUM RATE TARIFF 4 22

Summary 22

1. Procedural History 22

2. Background 55

3. CMSA's Proposal to Revise MAX 4 88

3.1. THE CMSA/DRA Joint Recommendation 99

3.2. Factual Support for Revising MAX 4 99

3.3. Cost and Operations Survey 1010

3.4. Labor Costs 1010

3.5. Market Prices 1111

3.6. Freight Bill Survey 1212

3.7. Distance Rate Regions 1313

3.8. The Productivity Offset Factor 1414

4. Discussion 1717

5. Categorization and Need for Hearing 1919

6. Comments on Proposed Decision 1919

7. Assignment of Proceeding 1919

Findings of Fact 1919

Conclusions of Law 2525

ORDER 2525

DECISION REVISING MAXIMUM RATES AND
CHARGES IN COMMISSION MAXIMUM RATE TARIFF 4

Summary

Maximum Rate Tariff 4 Naming Maximum Rates and Rules for the Transportation of Used Property, Namely: Household Goods and Personal Effects over the Public Highways within the State of California by Household Goods Carriers, effective July 23, 1998, is revised and simplified in accordance with a joint proposal by petitioner/applicant California Moving and Storage Association and the Commission's Division of Ratepayer Advocates, as follows:

· Hourly rate Territory C is eliminated, and Territory C counties are incorporated into current Territory B.

· Distance rate Region 1 is eliminated, and Region 2 rates are applicable to the entire state.

· The productivity offset factor used in making annual rate adjustments is reset from .667 (the current factor) to .95 for five years, effective with the tariff increase in January 31, 2010.

· Commencing with the tariff increase in January 2015, the productivity offset factor will be re-evaluated and reset every two years. If productivity change is positive, the productivity offset factor will be set at .85; if productivity change is negative, it will be set at .95.

Application 08-03-005 is closed.