[Federal Register Volume 61, Number 109 (Wednesday, June 5, 1996)]
[Notices]
[Page 28638]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14088]
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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board 1
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\1\ The ICC Termination Act of 1995, Pub. L. No. 104-88, 109
Stat. 803 (ICCTA), which was enacted on December 29, 1995, and took
effect on January 1, 1996, abolished the Interstate Commerce
Commission (ICC) and transferred certain functions and proceedings
to the Surface Transportation Board (Board). Section 204(b)(1) of
ICCTA provides, in general, that proceedings pending before the ICC
on the effective date of that legislation shall be decided under the
law in effect prior to January 1, 1996, insofar as they involve
functions retained by ICCTA. This decision relates to a proceeding
that was pending with the ICC prior to January 1, 1996, and to
functions that are subject to Board jurisdiction pursuant to 49
U.S.C. 10704.
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[STB Ex Parte No. 523 (Sub-No. 1)]
Railroad Cost of Capital--1995
AGENCY: Surface Transportation Board.
ACTION: Notice of decision.
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SUMMARY: On June 5, 1996, the Board served a decision to update its
estimate of the railroad industry's cost of capital for 1995. The
composite cost of capital rate for 1995 is found to be 11.7%, based on
a current cost of debt of 7.4%, a cost of common equity capital of
13.4%, a cost of preferred equity capital of 3.2%, and a 26.0% debt,
72.8% common equity, 1.2% preferred equity capital structure mix. The
cost of capital finding made in this proceeding will be used in a
variety of Board proceedings.
EFFECTIVE DATE: This action is effective June 6, 1996.
FOR FURTHER INFORMATION CONTACT: Leonard J. Blistein, (202) 927-6171.
(TDD for the hearing impaired: (202) 927-5721.)
SUPPLEMENTARY INFORMATION: The cost of capital finding in this decision
shall be used to evaluate the adequacy of railroad revenues for 1995
under the standards and procedures promulgated in Standards for
Railroad Revenue Adequacy, 3 I.C.C.2d 261 (1986). This finding may also
be used in other Board proceedings involving, for example, the
prescription of maximum reasonable rate levels and proposed
abandonments of rail lines. Additional information is contained in the
Board's decision. To obtain a copy of the full decision, write to,
call, or pick up in person from: DC NEWS & DATA, INC., Room 2229, 1201
Constitution Avenue, NW., Washington, DC 20423. Telephone: (202) 289-
4357/4359. (Assistance for the hearing impaired is available through
TDD services (202) 927-5721.)
Environmental and Energy Considerations
This action will not significantly affect either the quality of the
human environment or the conservation of energy resources.
Regulatory Flexibility Analysis
Pursuant to 5 U.S.C. 605(b), we conclude that our action in this
proceeding will not have a significant economic impact on a substantial
number of small entities. The purpose and effect of this action are to
update the annual railroad industry cost of capital finding by the
Board. No new reporting or other regulatory requirements are imposed,
directly or indirectly, on small entities.
Authority: 49 U.S.C. 10704(a).
Decided: May 22, 1996.
By the Board, Chairman Morgan, Vice Chairman Simmons, and
Commissioner Owen.
Vernon A. Williams,
Secretary.
[FR Doc. 96-14088 Filed 6-4-96; 8:45 am]
BILLING CODE 4915-00-P