Railroad Cost of Capital Set at 10.58% for 2022
The Surface Transportation Board (STB) has determined that the cost of capital for the railroad industry was 10.58% for 2022.
WCTL
STB Eyes Alternatives to URCS (UPDATED May 25)
The Surface Transportation Board (STB) in October 2022 sought public comment on a new report that identifies and evaluates alternatives to the Uniform Railroad Costing System (URCS) that could be used as a replacement general-purpose costing methodology. The Association of American Railroads (AAR) and the Western Coal Traffic League (WCTL) respond.
WCTL Seeks Revenue Adequacy Remedy (Updated May 23 with AAR Rebuttal)
The Western Coal Traffic League (WCTL) has filed for a writ of mandamus with the D.C. Circuit Court for the Surface Transportation Board to take administrative action in Docket No. EP 722, Railroad
Commentary
STB Chided on Rail Revenue Constraint
When Congress partially deregulated railroad rates and practices in 1980 (Staggers Rail Act), it instructed regulators to consider revenue adequacy in determining the reasonableness of rail rates charged captive shippers—those lacking effective transportation alternatives to rail. More than four decades later, neither the Interstate Commerce Commission (ICC) nor its Surface Transportation Board (STB) successor have promulgated the intended regulatory rules.
Commentary
Fifty shades of shipper vexation
The 50 shades of vexation venting from self-described captive shippers over delay by the Surface Transportation Board (STB) in considering their petitions to dilute rail regulatory freedoms is matched only by their asserting last year a contradictory 50 shades of encouragement that the Board do just that.