Rate Increase
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- Bus Company
- Bus Company Where evidence establishes that the fares presently 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
- Hebrank Formula
- 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 geographical area with similar types of riders. Decision: 1 N.J.A.R. 402
- 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 comply 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 of Return
- A method of calculating rate of return on equity is improper if it understates the rate of return on equity. Decision: 6 N.J.A.R. 414
- Reasonability
- Reasonable increases in customer rates should be based on an examination of income and reasonable operating expenses. Decision: 4 N.J.A.R. 044