GOVERNMENT OF THE VIRGIN ISLANDS

OF THE UNITED STATES



Public Services Commission

Inre

TRANSPORTATION SERVICES OF



ST. JOHN, INC. AND VARLACK VENTURES,

INC. RATE INVESTIGATION



Docket No. 640

Order No. 62/2018



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ORDER



WHEREAS, on September 6, 2017, the Virgin Islands suffered a direct impact from

Hurricane Irma, which directly struck the St. Thomas-St. John District as a Category 5 storm; and

on September 19, 2017, Hurricane Maria directly struck the St. Croix District as a Category 5

storm and cause further damage to the St. Thomas-St. John District; and



WHEREAS, as a direct result of these storms, Transportation Services of St. John, Inc.

and Varlack Ventures, Inc. (collectively “Ferry Franchisees”) were required to suspend service

until the United States Coast Guard (hereinafter “USCG”) inspected and cleared the route(s)

between St. Thomas and St. John; and



WHEREAS, after the USCG inspected and cleared the route(s) between St. Thomas and

St. John, ferry service was partially restored; and



WHEREAS, the Ferry Franchisees suffered losses due to various factors including damage

to vessels, the imposition of a curfew, loss of employees, guidelines by the USCG and the

Department of Homeland Security, lack of navigational lighting at docking facilities and the

availability of fuel and water; and



WHEREAS, on December 5 and 6, 2016, Hearing Examiner Jennifer Jones scheduled

public hearings regarding the request for a fare increase and Hearing Examiner Jones and PSC

consultant Avery Williams testified on the rate investigation conducted and recommended a 9%

rate of return and a non-resident rate of $8.15; and



WHEREAS, the Commission did not accept the recommendations of the Hearing

Examiner and did wish to grant a permanent rate due to the uncertainties surrounding the

Franchisees’ revenues;



WHEREAS, on December 19, 2017, the Virgin Island Public Services Commission

(hereinafter the “Commission” or “PSC”) held a regular meeting at the Henry E. Rohlsen Airport

on St. Croix, where the Ferry Franchisees testified on the status of their operations since the

hurricanes; and