The owner of the Chappaquiddick Ferry is proposing a rate hike to cover what he says are declining revenues and rising expenses. 

Chappy ferry owner Peter Wells lodged a request for a 12 per cent increase for most fares with the select board last week, and the idea sparked debate with the town ferry steering committee on Wednesday.

Mr. Wells urged the committee to act fast to capitalize on the summer season’s tourists to help keep the service between downtown Edgartown and Chappy afloat.

“Time is flying by, folks. The people with the money are here,” Mr. Wells said. 

Mr. Wells was concerned that President Donald Trump’s administration will cut federal grants that would help pay to rebuild the ferry infrastructure to be more resilient to rising sea levels. He said the ferry landings need to be maintained, which could cost at least $60,000 each year.

Under the proposed rate hike from Mr. Wells, vehicle fares would increase from $15 to $17 and bicycle fares $7 to $8 per round trip. Passenger fares would remain $5 per round trip.  

The Chappaquiddick year-round vehicle fare would also increase from $5.80 to $6.50 and passenger fare from $1.73 to $1.94 per round trip.

The book price for vehicles would total $162.50 and for passengers the total would be $97.50.

The Chappaquiddick Ferry is a private company owned by Mr. Wells and his wife, committee member Sally Snipes. It is the only mode, other than by private boat, for which the public can get to and from Chappaquiddick.

“It’s a public service provided by a private company that has a monopoly,” said steering committee member Rick Biros at Wednesday’s meeting.

A license with the town that’s existed for 18 years, according to Mr. Wells, requires all rate changes to be approved by the select board after a public vetting process. At its meeting last week, the select board requested the recommendation of the advisory committee.

The committee did not vote to recommend the rate hike outright, but provided potential paths forward for the ferry service.

The first would allow the board to change the rates to meet a certain expense-to-revenue ratio. For the first five months of 2025, expenses have exceeded revenue, according to Mr. Wells.

“It sounds like for the first five months of 2025 it’s an excess of that range,” said Rick Schifter, the committee chair. “If the select board is satisfied with whatever documentary evidence that they would want… they could then determine the rate increase is warranted.”

The second method is an emergency alternative, where the ferry operator would be allowed to request a modest rate increase that would not exceed one-half of the consumer price index, once every five years without financial disclosure. 

The committee drafted these methods in a proposed license agreement submitted to the select board in 2023 that was never adopted. Mr. Wells and Ms. Snipes, were the only committee members that voted against the recommendation at Wednesday’s meeting.

“In the time that you’ve been sitting back, waiting for some response from an attorney about the draft proposal, I’ve been running the ferry boat worried about how the economy is acting,” Mr. Wells said. “There’s nothing in that draft that actually is in favor of the ferry.”

Mr. Wells said he would stop running a second boat if the rate increase wasn’t approved. 

“If I don’t have enough money, I can’t pay people, and the boat can’t run,” he said. 

Mr. Biros said that the financial burden of raising the rates would fall on Chappaquiddick residents, not tourists, and to not follow the recommended guidelines would be irresponsible.

“I think we need to get away from statements and opinions and get to the facts…” he said. “We’re at an inflection point [and] the community needs the support.”