PUBLIC SERVICE COMMISSION. CHARLESTON Entered: March 27, 2001

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1 ORIGINAL a ENTERED - O.B. Page PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON Entered: March 27, alj wpd M.C. CASE NO A TAXI, INC., doing business as GREENBRIER VALLEY LIMOUSINE SERVICE, White Sulphur Springs, Greenbrier County. Rule 19A application to increase rates and charges under P.S.C. M.C. Certificate No RECOMMENDED DECISION On August 9, 2000, Taxi, Inc., doing business as Greenbrier Valley Limousine Service, White Sulphur Springs, Greenbrier County (Applicant or Company), filed an application with the Public Service Commission, pursuant to Rule 19A of the Commission's Rules and Reffulations for the Government of the Construction and Filinff of Tariffs of Public Utilities and Common Carriers bv Motor Vehicle, requesting an increase in rates and charges under P.S.C. M.C. Certificate No. 5526, for its customers in Greenbrier, Mercer, Monroe, Nicholas, Pocahontas and Summers Counties. On September 18, 2000, the Public Service Commission issued a Referral Order in this matter, referring this proceeding to the Division of Administrative Law Judges for a decision to be rendered on or before April 6, By Procedural Order entered on October 17, 2000, Commission Staff was directed to file its report on or before November 20, On November 20, 2000, Thornton Cooper, Deputy Director, Transportation Division, filed a 19A Exhibit prepared by James H. Burdette, Utilities Analyst, Utilities Division. According to Staff, the operation is owned and operated by Donald Hoffman, President, Barbara Hoffman, Vice President and James Gallagher, Vice President. Currently, the company employees are the aforesaid officers, three office personnel, mechanics and drivers. Due to the seasonal nature of the Company's business, the number of employees varies from time to time. Staff noted that the Applicant provides limousine service from the Greenbrier Valley Airport to the Greenbrier Resort and vicinity. In addition, the Applicant's limousine service involves Greenbrier, Mercer, Monroe, Nicholas, Pocahontas and Summers Counties. According to Staff, of the Company's total revenue, 41% represented West Virginia revenue. The balance covered out-of-state revenue (mostly

2 Virginia). Throughout the Staff Report, the 41% factor has been used to allocate all expenses at per books, per books adjusted, going-level, proforma and Staff-recommended. According to Staff, several per books adjustments have been made. Most of these adjustments were the result of errors being made in the proper posting of accounts, which resulted in various income and expense misstatements. Staff has discussed this situation with Company personnel and they are aware of the problems. Staff has been informed that the Company has employed a CPA to review its books and records to determine what procedures and record keeping systems might best suit the Company's needs. Staff has included in this report salary increases for all employees, except officers, as requested by the Company. These increases should increase payroll by $9,623 per year. Staff believes this is a reasonable request. Employees have not had pay increases for several years. Staff noted that the Company has also requested that consideration be given for the purchase of various vehicles. The Company anticipates purchasing used vehicles. Staff recommended the Company be required to implement the salary increases and purchase the vehicles within six months and certify to the Commission their occurrence. If this should not occur, rates should be adjusted to reflect the removal of these items. According to Staff, in midyear 1999, The Greenbrier Resort began charging the Company a 4% processing fee for the billings that are processed by the Resort. Based on 1999 billings processed through The Greenbrier, these fees would amount to approximately $25,000. Staff has allowed for these fees at going-level in this report. During Staff's examination, it was informed that the Company had recently included an additional 3% surcharge on all billings through The Greenbrier in order to recover some of the fees being charged by The Greenbrier. Staff informed the Company that such charges can only be recovered through rates as approved by this Commission. The Company has voluntarily discontinued this practice. The Company should be directed not to increase rates in any form without the approval of this Commission. Staff finally noted that its review showed an operating ratio of 93.90% before income taxes and a cash deficit of $6,671 under Staff's proposed rates. Staff recommended that the rates recommended by Staff be approved provided that proper publication is made and no protests are received. On December 7, 2000, an Order was entered directing the Applicant to give notice to its customers of the Staff-recommended increased rates and charges, with affidavits of publication to be filed with this Commission no later than January 5, On December 12, 2000, Thornton Cooper, Deputy Director, Transportation Division, filed a letter/memorandum with the Commission stating that, on December 12, 2000, Mr. Hoffman faxed to the Commission an assertion that his Company also held authority in Raleigh County. According to Staff, an attorney who has represented Mr. Hoffman's company Public Service Commission -2-

3 in other cases faxed a copy of an Order, issued on August 14, 1990, in M.C. Case No C, that granted the Applicant herein another certificate -- designated P.S.C. M.C. Certificate No authorizing the Applicant herein to provide limousine service in trips beginning or ending in Mercer and/or Raleigh County. However, Staff noted that the rates under which the Applicant is to operate under P.S.C. M.C. Certificate No appear to be different from those under which the Applicant is authorized to operate under P.S.C. M.C. Certificate No Therefore, Staff needs to submit a revised Audit Report correctly reflecting the current rate structures under both certificates. Staff requested an extension of the decision due date and additional time for it to prepare a revised report. On December 15, 2000, Commission entered an Order granting Staff's motion, which revised the Staff Audit Report due date to be January 22, 2001, and extended the Administrative Law Judge decision due date until June 29, Upon consideration of all of the above, the Administrative Law Judge is of the opinion that the published increased rates and charges are reasonable and should be finally approved, without hearing, since no protests to the published rates have been filed. FINDINGS OF FACT 1. No protests were received in response to the publication of the increased rates and charges. (See case file generally). r Public Service Commission -3-

4 - 2. Staff is of the opinion that its recommended rates should be approved, without a hearing, following proof of proper publication, if substantial protests are not received. (See, Staff Rule 19A Exhibit filed November 20, 2000). CONCLUSION OF LAW Since publication was made of the Staff-recommended rates and charges and no protests were filed in response thereto, it is reasonable to finally approve the increased rates and charges as stated in the Further Order Requiring Publication issued on January 29, ORDER Greenbrier Valley Airport to Greenbrier Hotel I' Shuttle or Shared Vehicle - per person $ Minimum 0.00 Private Car (for commercial flight passengers) - Per Person Minimum Private Car (1-4 Passengers from private, charter or corporate aircraft) - Flat Rate Private (5 to 8 Passengers)- Per Person Minimum Private Stretched Limousine (Up to 8 Passengers) - Per Person Minimum Private (Up to 20 Passengers off Commercial Flight - Per Person Minimum Private (Up to 20 Passengers off the Ramp) - Per Person Minimum Sedan Sedan Sedan-Waiting Time Limousine Limousine Limousine Minimum 2 Limousine-waiting Time Public Service Commission - - inia

5 -Waiting Time -Waiting Time - Waiting Time Minimum 2 Minimum 2 Minimum *Whichever is greater. Mileage and hourly charges will be calculated "portal to portal," i.e:, when the vehicle departs the garage, in White Sulphur Springs, until it returns to the garage. IT IS FURTHER ORDERED that Taxi, Inc., doing business as Greenbrier Valley Limousine, file an original and at least five (5) copies of a proper tariff reflecting the rates approved herein within thirty (30) days of the date that this order becomes final. The Executive Secretary is hereby ordered to serve a copy of this order upon the Commission by hand delivery, and upon all parties of record by United States Certified Mail, return receipt requested. Leave is hereby granted to the parties to file written exceptions supported by a brief with the Executive Secretary of the Commission within fifteen (15) days of the date this order is mailed. If exceptions are filed, the parties filing exceptions shall certify to the Executive Secretary that all parties of record have been served said exceptions. If no exceptions are so filed this order shall become the order of the Commission, without further action or order, five (5) days following the expiration of the aforesaid fifteen (15) day time period, unless it is ordered stayed or postponed by the Commission. Any party may request waiver of the right to file exceptions to an Administrative Law Judge's Order by filing an appropriate petition in writing with the Secretary. No such waiver will be effective until approved by order of the Commission, nor shall any such waiver operate to make any Administrative Law Judge's Order or Decision the order of the Commission sooner than five (5) days after approval of such waiver by the commission. MCC :mal ac. wpd Yc&Oaf Mi es C. Cary Administrative Law Judge