PSC Defers Ferry Rate Decision After Operators Allege Conflict; Report Recommends 21% Rate-Base Cut

The V.I. Public Services Commission on Tuesday deferred action on the final report from its investigation into St. Thomas-St. John ferry rates after the two franchised operators accused hearing examiner Jed JonHope of a conflict of interest and asked commissioners to discard his findings. JonHope’s report recommends reducing the ferry service rate base by approximately 21 percent, from about $7.3 million to $5.7 million. The report follows an investigation into the rates and operations of the territory’s franchised ferry system. “The rate base historically has been about $7.3 million, and I recommended a reduction to 5.7,” Mr. JonHope said. “It is up to the commission now to determine how those savings are allocated.” The proposed rate base is shaped substantially by an earlier PSC directive to separate the heavily traveled Red Hook-Cruz Bay route from the less-used downtown Charlotte Amalie-Cruz Bay route. JonHope said the new calculation would reflect verifiable operating costs a...