Intra-Alaska Mainline Service Mail Rates

Order 2006-3-24
OST-2003-14695

Issued and Served March 27, 2006

Mainline Quarterly Fuel Cost Adjustments

The Department has stated that we would continue this quarterly update for fuel until further notice. Since the carriers' traffic and financial data are reported 45 days after the end of the accounting period, we will continue to make quarterly adjustments with a onequarter lag from the end of one quarter until the beginning of the next quarter. The data in Appendix B show that fuel costs have decreased $0.00925 per ATM, from $0.39014 to $0.38089, or 2.37 percent. This produces a 0.96 percent decrease in the overall linehaul mail rate as shown in Appendix A of this order.

The terminal portion of the mail rate is unaffected by our update of the linehaul for quarterly fuel costs, but for easy reference we have included them in the Appendices. The next anticipated quarterly adjustment for fuel costs for the mainline carriers would be based on data for the quarter ended March 31, 2006, and would be effective for the period July 1, 2006, through September 30, 2006.

By: Todd Harmon