Surface Transportation Board

Railroads Seek to Avoid a Regulatory Patchwork Quilt

The Clean Water Act (CWA) imposes permitting obligations on “point sources.” Should those obligations apply to railroad cars, which move freely from state to state? The U.S. railroad industry, through the Association of American Railroads, has asked the Surface Transportation Board to take up the question and to rule that any CWA permitting obligations are preempted by the Interstate Commerce Commission Termination Act.

Impeachment Saved ICC/STB Independence

While talk of Presidential impeachment is difficult to avoid, probably few can recite how the impeachment of a federal judge in 1912 helped to secure the independence of the Interstate Commerce Commission (ICC) and its Surface Transportation Board (STB) successor.

STB: Heed Seriously the Yak Fat Ghost

On 74 acres in central Virginia, there graze for commercial production some two-dozen Himalayan yaks—a largely fat-free, shaggy, handlebar-horned and oft cantankerous animal first imported to North America during the 19th century. If the connection of yak and its fat to transportation economic regulation is not obvious, blame your youth, as more than half a century has passed since the Great Yak Fat Caper of 1965 entered railroad lore—a dirty-trickster’s fraud now indelibly stained on the Interstate Commerce Commission’s (ICC) reputation, and, by association, its Surface Transportation Board (STB) successor.

STB Needs To Get Real

Dr. William Huneke, Consulting Economist, offered his opinion in the Railway Age report STB “Whack a Mole.” As he pointed out, the Surface Transportation Board in the past rarely had time or staff to do more than react to the latest rate case, stakeholder petition or Congressional request. He described a sense of Whack a Mole in the flurry of STB regulatory reform proposals, particularly STB’s tinkering with the industry cost of capital calculation.

STB’s Cost of Capital Dilemma

NEWS ITEM: The Surface Transportation Board (STB) proposes to change the formula for computing the cost of the equity component of the railroad industry’s cost of capital. This is of consequence to railroads, shippers and investors because cost of capital is a determinant of railroad revenue adequacy and a threshold for a host of other regulatory limitations on rail ratemaking.

Comments on STB Ex Parte 711

To: The Honorable Ann D. Begeman, Chairman, Surface Transportation Board: I am submitting this testimony to be included in the consideration and record on Ex Parte 711, Reciprocal Switching. Having served 44 years in the railroad industry, both as a Class I marketing/rate department officer and as President and CEO of short line Maryland Midland Railway, I have a unique and comprehensive view of this entire subject.

Convenience Fees, Profit Centers and Fuel Surcharges

Recently, I purchased movie tickets on line. As I was checking out, I noticed I was getting charged a “convenience fee,” which for me begged the question: Just whose convenience? After all I was saving the theater the cost of printing the tickets and their employees’ time selling me the ticket. In my mind this convenience fee was really a profit center for the theater.