Bus Company

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Charter Service
Where a bus service is not open to the general public, has guaranteed revenues and has its route modified on a regular basis, that service's operations are special charter in nature. Decision: 5 N.J.A.R. 005
Fitness
A bus company's earlier operation of a route in violation of a Department of Transportation order does not detract from its fitness to provide service in the best interest of the public. Decision: 6 N.J.A.R. 285
Hebrank Formula
The use of the experience of a comparable bus line (instead of the Hebrank Formula) to measure rider resistance to a fare increase is appropriate where that comparable bus line experienced a comparable fare increase and traveled over similar routes, in a similar geographic area with similar types of riders. Decision: 1 N.J.A.R. 402
While the better practice might be to examine parallel or competitive bus lines after a fare in- crease has been granted, the Hebrank formula may be used to determine pro forma projected revenues. Decision: 4 N.J.A.R. 001
Inflation
An administrative law judge may take official notice of rising operating costs due to inflation. Decision: 4 N.J.A.R. 001
Official Notice
An administrative law judge may take official notice of rising operating costs due to inflation. Decision: 4 N.J.A.R. 001
Operating Expenses
Under certain circumstances, operating expenses may be adjusted upward .to account for inflation. Decision: 4 N.J.A.R. 001
Rate Base
Where a proposed fare increase would not result in an average per bus profit nor would that increase change the fact that the gross operating revenues of each company would still exceed the depreciated book cost of the property used in each company's business, no rate base need be established. Decision: 1 N.J.A.R. 402
Rate Increase
Where evidence established that the fares present- ly charged by a bus company are insufficient to meet average operating expenses and that the proposed fare increase would not result in an average per bus profit, the requested fare increase is reasonable and should be granted. Decision: 1 N.J.A.R. 402
Rate of Return
The principal criterion in determining a rate of return is reasonableness and not any fixed mathematical standard. Decision: 4 N.J.A.R. 011
Salaries
Where management salaries are not unreasonable in light of the duties and responsibilities assumed, they will be allowed. Decision: 4 N.J.A.R. 014