Background - California

?ALJ/ADR/smtDate of Issuance 7/28/2020Decision 20-07-021 July 16, 2020BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIAIn the matter of the Application of The Sonoma County Airport Express, Inc., [PSG0001120] to establish a new base tariff rates and to establish a Zone of Rate Freedom of Plus 30% or Minus 30%, to that newly established tariff, pursuant to provisions of Pub. Util. Code Section 454.2.Application 18-05-016GRANTING SONOMA COUNTY AIRPORT EXPRESS, INC.’S PETITION FOR MODIFICATION OF DECISION 18-08-001SummaryThis decision grants the petition of Sonoma County Airport Express, Inc. (PSG0001120) to modify Commission Decision 18-08-001 and amends that Decision to extend the time period in which Sonoma County Airport Express, Inc.’s approved Zone Of Rate Freedom may be exercised. This proceeding is closed.BackgroundPetitioner Sonoma County Airport Express, Inc. (PSG0001120) holds a Certificate of Public Convenience and Necessity (CPCN) as a passenger stagecoach corporation (PSC). Petitioner is currently authorized to operate as a PSC over specified routes 1) between Santa Rosa, Oakmont Rohnert Park, and Petaluma, on one hand, and San Francisco and Oakland International Airports, on the other hand, and 2) between hotels in Santa Rosa and Rohnert Park, on one hand, and wineries located in Santa Rosa, Kenwood, and Geyserville, on the other hand.On August 7, 2018, the California Public Utilities Commission (Commission) authorized Sonoma County Airport Express, Inc. (SCA) to establish new base tariff rates and to establish a Zone of Rate Freedom (ZORF) of plus fifteen percent (15%) or minus 15% to its newly established tariff via Decision (D.) 18-08-001. Ordering Paragraph 2 of D.18-08-001 required the ZORF authorized therein to be exercised by SCA “within 120 days after [its] effective date.” The period in which SCA was authorized to exercise its ZORF, lapsed on or about December 15, 2018. SCA did not exercise its ZORF prior to expiry. Petitioner asserts that after increasing its base rates pursuant to D.18-08-001 authority, it “postponed” ZORF fare increases “for fear of possible negative reaction from passenger customers.” Petitioner contends that exercise of its ZORF authority was further delayed by loss and replacement of its General Counsel, Jared Churchill, as well as mistake and inadvertence during fourth quarter 2018 internal administrative changes within SCA. On June 14, 2019, SCA filed Petition To Modify Decision 18-08-001 In Order To Extend Implementation Of Approved ZORF Rate In Accordance With Rule?16.4 Of The Commission’s Rules of Practice And Procedure (Petition). The Petition requests that the Commission grant a 120-day extension of time, from entry of order herein, for SCA to exercise its June 14, 2019 ZORF. The Petition further asserts that good cause exists to grant the Petition in light reasonable “deferred” action on the authorized ZORF attributed to 1) passenger customer rate satisfaction, 2)?internal administrative changes to SCA management, 3)?changes to SCA’s legal representation, and 4) and other mistake and inadvertence. DiscussionPublic Utilities Code Section 1708 gives the Commission authority to “rescind, alter, or amend any order or decision made by it.” Additionally, Rule?16.4 of the Commission’s Rules of Practice and Procedure (Rule(s)) provides for allegations of new or changed facts in support of petition for modification by declaration or affidavit. Rule 16.4(c) provides that a petition to modify be filed within one (1) year of the “effective date of the decision proposed to be modified.” SCA’s Petition was timely filed on June 14, 2019, less than one (1) year after both the effective and issuance dates of D.18-08-001. In support of its petition, SCA filed and served Declaration of William D. Taylor In Support Of Petition To Modify Decision 18-08-001 of Approved ZORF Rates In Accordance With Rule 16.4 Of The Commissioner’s Rules Of Practice And Procedure (“Taylor Decl.”), including new facts occurring after issuance of D.18-08-001. The Taylor Decl. asserts facts which SCA contends explains and justifies its failure to exercise its ZORF authority within the period proscribed in D.18-08-001, including 1)? passenger customer rate satisfaction, 2) internal administrative changes to SCA management, 3) changes to SCA’s legal representation, and 4)? other mistake and inadvertence. This Commission concurs with the reasonableness of the justifications put forth in the petition for modification.Waiver of Comment PeriodThis is an uncontested matter in which the decision grants the relief requested. Accordingly, pursuant to Section 311(g)(2) of the Public Utilities Code and Rule 14.6(c)(2) of the Commission’s Rules of Practice and Procedure, the otherwise applicable 30 day period for public review and comment is waived. Assignment of ProceedingCommissioner Liane M. Randolph is the assigned Commissioner and Andrea D. McGary is the assigned Administrative Law Judge in this proceeding.Findings of FactSonoma County Airport Express, Inc. (PSG0001120) (SCA) did not exercise its Zone of Rate Freedom (ZORF) within the 120-day period of time authorized by Commission D.18-08-001.SCA’s petition to modify was filed within one (1) year of the effective date of D.18-08-001.The Declaration of William D. Taylor In Support Of Petition To Modify Decision?18-08-001 of Approved ZORF Rates In Accordance With Rule 16.4 Of The Commissioner’s Rules Of Practice And Procedure filed and served herein provides new and changed facts in support of modification of D.18-08-001. SCA deferred action on its ZORF authority to address projected passenger negative customer reaction to successive base rate increases and ZORF increases within a short time frame.Mistake and inadvertence during internal administrative and legal counsel changes in 2018 caused additional delay to SCA’s exercise of its ZORF authority within the 120-day time period authorized by D.18-08-001. Conclusions of LawPetitioner SCA has demonstrated good cause to modify D. 18-08-001.Petition To Modify Decision 18-08-001 In Order to Extend Implementation of Approved Zone of Rate of Freedom should be granted. ORDERIT IS ORDERED that:Sonoma County Airport Express, Inc.’s Petition to Modify Decision?1808001 In Order To Extend Implementation of Approved Zone of Rate of Freedom is granted. Ordering Paragraph 2 of Decision 18-08-001 is modified as follows:Sonoma County Airport Express, Inc. (PSG0001120), a corporation, shall file a tariff with its increased fares and a Zone of Rate of Freedom tariff of plus and minus 15 percent with the Commission and the public in accordance with Application 1805-016 at least ten (10) days before the effective date of the tariff. The Zone of Rate of Freedom tariff of plus or minus fifteen percent (15%) authorized in Decision 18-08-001 on August?7,?2018 shall expire unless exercised on or before October 13, 2020. This re-opened proceeding Application 18-05-016 is closed. This order is effective today.Dated July 16, 2020, at San Francisco, CaliforniaMARYBEL BATJER PresidentLIANE M. RANDOLPHMARTHA GUZMAN ACEVESCLIFFORD RECHTSCHAFFENGENEVIEVE SHIROMA Commissioners ................
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