13 South Evergreen Park Dr. SW., P.O. Box 47250 - Olympia, Washingtion 98504-7250
(360 )664-1160 - TTY - (360) 586-8205



JOHN R. BINGHAM

September 19, 2009


Regulation of Lake Chelan's Commercial Ferry Service


Background

The Washington Utilities and Transportation Commission (UTC) regulates commercial ferry service. "Commercial ferries" offer service between fixed points over set routes. Commercial ferry service does not include charter or excursion boat services. Along with fares, the commission also regulates:

 

* Market entry by granting exclusive operating rights in a specific territory.
* Terms and conditions of service.
* Consumer protection.

 

Currently the UTC regulates eight commercial ferry service providers operating mainly on Puget Sound. Rates, terms and conditions of service are outlined in a document called a tariff. As part of its regulatory duties, the commission must approve all changes to a private ferry's tariff before the company may implement any changes (e.g., rates, routes or passenger rules).
During the 2009-10 legislative session, Engrossed Senate Bill (ESB) 5894 was passed and on May 19, Gov. Gregoire signed the bill into law. The measure allows the commission to exempt certain commercial ferry-service operations from regulation after a hearing if the:

  * Ferry service does not serve an essential transportation service;
* Ferry service is solely for recreation; and
* Exemption from regulation (allowing others to compete) would not adversely affect the rates of services of an existing operator.
 

If a commercial ferry service operation is exempted from regulation by the commission, it means the company would no longer have exclusive operating rights in a specific territory and that other providers could apply to serve that route. Exemption also means that the ferry company's rates and terms of service are no longer regulated. This could have a profound effect on customers.
In addition, the new law directs the commission to conduct a study and report on the appropriateness of regulating the rates and services of commercial ferry-service operations on Lake Chelan. The report is to be delivered to the Legislature by Dec. 31. For the UTC to complete this study, the commission is asking for public comments. Two public meetings will be held at the following locations and times:

 
Date
Time
Place
Meeting 1
October 19, 2009
11 a.m.
Stehekin Community Hall
Stehekin, WA 98852

Meeting 2
October 19, 2009
7 p.m.
City of Chelan Council Chambers
135 E Johnson Ave
Chelan, WA 98816


You may also comment by using the public comment form on the UTC Web site at www.utc.wa.gov, or by e-mail to comments@utc.wa.gov. The UTC also will accept comments submitted by mail to:

 
UTC
P.O. Box 47250
Olympia, WA 98504-7250
 

Questions:
1. Value provided from regulating exclusive operating rights, rates and service

  a. What are the advantages to regulating ferry service on Lake Chelan?
b. What are the disadvantages?
c. What do you see as advantages and disadvantages of the local county government regulating ferries on Lake Chelan rather than the commission?
 
  1. County Government...key benefits and disadvantages
2. Special District… key benefits and disadvantages
3. Other (specify)… key benefits and disadvantages
 

2. Satisfied or not with the existing status quo.

  a. If you could change anything about the ferry service on Lake Chelan, what would it be and why?
b. What is it about the ferry service on Lake Chelan that you would want to see remain the same and why?
 

Sincerely,

John Cupp
Public Involvement Coordinator