BACKGROUND

By Resolution TL-18927, dated April 20, 2000, we authorized VCCs for a 180-day period to file tariffs with fares that are within a "zone of reasonableness" whose upper limit is 15% above their current fares. This action was taken in response to the significant increases in fuel prices that had occurred in California. We wanted VCCs to be able to obtain needed fare relief with minimum regulatory burden. Without this special authority carriers would have to make formal application to the Commission for a fare increase. The Rail Safety and Carriers Division (RSCD) reports that 6 of the 21 VCC certificate holders have filed fare increases of varying degrees under authority of Resolution TL-18927. This authority is scheduled to expire October 17, 2000.