Members of the Maine Public Utilities Commission (PUC) have recommended that a formal investigation not be opened into the Casco Bay Island Transit District’s (CBITD) proposed changes to the ferry’s rate schedule.
This comes several months after dozens of Mainers have signed a petition asking the PUC to investigate the CBITD’s proposal to make a number of substantial changes to the ticketing options and prices for the Casco Bay Ferry.
In April of this year, the CBITD voted to increase the cost of round-trip tickets for tourists and visitors while simultaneously decreasing the price of the long-term passes typically used by those who frequently travel to and from the islands.
Not only did the CBITD adjust ticket pricing, but it also made major structural changes to the ticketing system by imposing a flat fare for all islands and discontinuing the option to purchase commuter books of discounted tickets.
These efforts were designed to be coupled with spending cuts in hopes of reducing the Casco Bay Lines’ continued multi-million dollar operating losses by 25 percent, or about $1 million.
This marked the first time in 15 years that Casco Bay Lines has increased its ticket prices.
[RELATED: The Casco Bay Ferry Will Soon Become More Expensive for Visitors and Cheaper for Commuters]
In May, a petition signed by sixty ratepayers was filed with the Maine PUC asking the agency to investigate these changes.
This complaint alleged that the adjustments made by the CBITD were driven by “ulterior motives.”
Authored by attorney Andrew Doukas, the complaint suggested that the true motivation behind the changes is to reduce the flow of visitors to Peaks Island while also generating supplemental revenue to lower the cost of ferry service for residents.
[RELATED: Maine PUC to Investigate Proposed Price Hike for Casco Bay Ferry After Dozens Sign Petition]
The recommendation released Tuesday by the Maine PUC explains that, contrary to these accusations, members of the Commission believe that the CBITD acted within its authority and that the new rate structure properly balances the district’s financial needs with their passengers’ interests.
“The information provided by CBITD, shows that the District comprehensively examined its revenue, expenses and prospects for grants and other funding, and modeled these factors along with an analysis of passenger purchasing behavior, inflation, and a comparison to other ferry systems,” the PUC wrote.
“In addition, the information filed shows that in implementing the rate increase, CBITD followed all applicable statutes and Commission rules with regard to public notice and public participation,” they continued. “There does not appear to be any dispute on this point.”
The PUC went on to note that the vast majority of comments received by the CBITD during this process expressed support for the proposed changes to the fare schedule.
“The petitioners who oppose the rate increase argue that the new rates unfairly discriminate against visitors and less frequent ferry users and, in so doing, violate CBITD’s statutory authority,” they wrote. “The petitioners point to language in the District’s charter that requires the District to account for the needs of inhabitants of the Regulated Islands as well as ‘other passengers served by the [D]istrict.'”
The PUC then explains that Maine law also directs the CBITD to “preserve the affordability of passenger, freight and vehicle transportation for the year-round residents of the [Regulated Islands], the financial viability of the [D]istrict and the viability of the island communities served by the [D]istrict,” as well as to “reasonably cross-subsidize the affordability of rates.”
Comments or exceptions to the Commission’s decision may be filed on or before Tuesday, July 23.
Click Here to Read the Maine PUC’s Full Recommended Decision
