[Federal Register Volume 59, Number 101 (Thursday, May 26, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12871]


[[Page Unknown]]

[Federal Register: May 26, 1994]


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INTERSTATE COMMERCE COMMISSION

[Ex Parte No. 518]

 

Railroad Cost of Capital--1993

AGENCY: Interstate Commerce Commission.

ACTION: Notice of decision.

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SUMMARY: On May 25, 1994,, the Commission served a decision to update 
its estimate of the railroad industry's cost of capital for 1993. The 
composite cost of capital rate for 1993 is found to be 11.4%, based on 
a current cost of debt of 6.9%, a cost of preferred equity capital of 
3.9%, a cost of common equity capital of 13.2%, and a 25.7% debt, 2.0% 
preferred equity, and 72.3% common equity capital structure mix. The 
cost of capital finding made in this proceeding will be used in a 
variety of Commission proceedings.

EFFECTIVE DATE: This action is effective May 25, 1994.

FOR FURTHER INFORMATION CONTACT: Leonard J. Blistein, (202) 927-6171. 
[TDD for hearing impaired: (202) 927-5721.]

SUPPLEMENTARY INFORMATION: The cost of capital finding in this decision 
should be used to evaluate the adequacy of railroad revenues for 1993 
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 Commission proceedings such as the prescription of 
maximum reasonable rate levels and proposed abandonments of rail lines. 
Additional information is contained in the Commission's decision. To 
obtain a copy of the full decision, write to, call, or pick up in 
person from: Dynamic Concepts, Inc., room 2229, Interstate Commerce 
Commission Building, 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 is to 
update the annual railroad industry cost of capital finding by the 
Commission. No new reporting or other regulatory requirements are 
imposed, directly or indirectly, on small entities.

    Authority: 49 U.S.C. 10704(a).

    Decided: May 18, 1994.

    By the Commission, Chairman McDonald, Vice Chairman Phillips, 
Commissioners Simmons and Morgan.
Sidney L. Strickland, Jr.,
Secretary.
[FR Doc. 94-12871 Filed 5-25-94; 8:45 am]
BILLING CODE 7035-01-P