Discussion
This application requests authority for a change in the form of a service which Pacific is already providing. Whether it will be accepted by the public when an individual fare is charged remains to be seen, but the public need is clear from the long standing sponsorship of area businesses.
The only issue of substance raised by the protest is that of Pacific's financial fitness to operate this service. (See Scoping Memo, p. 2.) Currently, shuttle service accounts for only about 10% of Pacific's operations, and therefore does not constitute the predominant business of the company. The application does not reveal whether the requested change in form would likely increase or decrease Pacific's gross revenues, but it would not appear that this is critical to its financial health.
In D.00-06-073, we stated:
"As of August 31, 1998, Pacific's balance sheet shows assets exceeding $8.2 million, and current and non-current liabilities of $6.6 million, resulting in shareholder equity in excess of $1.6 million. Although its income statement shows considerable variability in its profits, it is clear that Pacific is a going concern, with annual gross revenues in the $8 to $10 million range. To the extent that it may rely upon the financial resources and creditworthiness of Coach, USA, its financial strength is greatly amplified." (Mimeo., p. 28.)
The amended financials show Pacific has year-to-date income as of December 1999 of $1,149,952 and total assets exceeding $11 million. In its response to The Airport Bus' objection Pacific notes that it had current assets of $1,679,762 as of December 1999, and is not on the verge of bankruptcy as The Airport Bus claims.
We agree with Pacific. The transmutation of a charter service into one that is supported by individual fares is not likely to threaten Pacific's long-term financial health. In any event, if Pacific's shuttle service fails, other certificated operators are available to fill the void with charter service. Given the obvious incentive for Disneyland to ensure that there is convenient service to local area hotels, we doubt there would be any cessation of service, as The Airport Bus suggests.
We will approve Pacific's application. Pacific has also requested that we waive the filing fee under Pub. Util. Code § 1036(a), because it is already operating in the same vicinity under PSC 1411.2 As the applicant is requesting additional authority within the immediate vicinity of its existing certificate, the filing fee under § 1036(a) does not apply. The applicable filing fee is $75 under Pub. Util. Code § 1904(a).
