DISCUSSION

The circumstances that existed when we issued Resolution TL-18927 have not changed significantly. Fuel prices in California remain high. We wish to continue to provide VCCs with a simple process to obtain fare relief. It is therefore appropriate that the authority to adjust fares given to VCCs by Resolution TL-18927 continue. We will extend the authority for a period of one year. RSCD will be monitoring fuel prices, and if price changes warrant cancellation or modification of this authority during the one-year period, we will act accordingly.

In Resolution TL-18927 we noted that by Decision 98-12-016, Catalina Channel Express, Inc. (Express) had been granted a zone of rate freedom (ZORF) of 10% above and below its existing fare levels. We further noted that Express had exercised the ZORF by making various levels of fare increases, up to the 10% limit. Resolution TL-18927 authorized Express to use the upper limit of its ZORF as the base for applying any increase under the temporary authority. We will continue to allow Express to apply the increase in this manner.