STATE OF CALIFORNIA GRAY DAVIS, Governor

PUBLIC UTILITIES COMMISSION

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

April 24, 2001

TO: PARTIES OF RECORD IN APPLICATION 96-04-013

This is the draft decision of Administrative Law Judge (ALJ) Ryerson. It will be on the Commission's agenda at the next regular meeting 30 days after the above date. The Commission may act then, or it may postpone action until later.

When the Commission acts on the draft decision, it may adopt all or part of it as written, amend or modify it, or set it aside and prepare its own decision. Only when the Commission acts does the decision become binding on the parties.

Parties to the proceeding may file comments on the draft decision as provided in Article 19, attached, of the Commission's "Rules of Practice and Procedure." Pursuant to Rule 77.3 opening comments shall not exceed 15 pages. Finally, comments must be served separately on the ALJ and the assigned Commissioner, and for that purpose I suggest hand delivery, overnight mail, or other expeditious method of service.

/s/ Lynn T. Carew

Lynn T. Carew, Chief

Administrative Law Judge

LTC:avs

Attachments

ALJ/VDR/avs DRAFT CA-8

5/24/2001

Decision DRAFT DECISION OF ALJ RYERSON (Mailed 4/24/2001)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of the Application of ISLAND NAVIGATION COMPANY, INC., a California corporation doing business as CATALINA ISLAND WATER TRANSPORTATION CO., (VCC-43) to amend its certificate of public convenience and necessity and to extend its operating authority to include the transportation of persons and baggage by vessel between Dana Point and Long Beach, California, on the one hand, and all points and places on Santa Catalina Island, on the other hand.

Application 96-04-013 (Filed April 9, 1996)

OPINION

Summary

This decision addresses the petition of Island Navigation Company, Inc. (Island Navigation) for a two-year extension of the time to exercise operating authority it received in Decision (D.) 97-11-027. Granting the petition would defeat the purpose of placing reasonable time limits on the exercise of that authority, which we granted on the basis of the public convenience and necessity existing at the time we issued our decision. Extending the period provided in that decision for Island Navigation to exercise its operating authority for the period requested would disregard the possibility that circumstances have changed significantly since that time. We conclude that a total period of four years for exercising such authority would be unreasonable, and we deny the petition.