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MPSC Denies Rate Increase Request by Champion's Auto Ferry, Inc.
Contact: Judy Palnau, 517-241-3323
May 24, 2012 - The Michigan Public Service Commission (MPSC) today denied a rate increase request by Champion's Auto Ferry, Inc., saying the increase is not supported by the record. The rates, fares, charges and rules previously issued by the company remain in effect until further order of the Commission.
Champion's Auto Ferry, Inc. on March 1 filed a tariff proposing to raise rates by $1 on most of its scheduled fares between Harsens Island and Algonac.
On April 12, the company and the MPSC staff entered a stipulation to extend time until June 1 or by order of the Commission, which ever would come first. The agreement also provided that the company would submit various financial and other company documents.
Today's order notes that Champion Auto Ferry, Inc. has not supported its position through proper documentation and that its revenues are sufficient to cover the allowable expenses and results in a 7 percent profit margin. The order directs the company to, by August 1 of every year, file the following: an annual report with the MPSC staff with detailed financial information; an independent auditor's report with certain information; and an updated five and 10-year business plan, including, but not limited to, plans for major reconstruction of docks and retaining walls, and the need to purchase a new vessel.
The company was also directed not to file a new application for any change in rate, fares, charges, or rules until 60 days after providing the Commission staff with a notice of intent to change those items. In addition, the company has been directed to address in its next rate case filing the MPSC staff's proposed trust account for the replacement of its vessels.
The MPSC is an agency within the Department of Licensing and Regulatory Affairs.Case No. T-1866
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