[Federal Register Volume 60, Number 117 (Monday, June 19, 1995)]
[Notices]
[Pages 32024-32025]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-14896]



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INTERSTATE COMMERCE COMMISSION

[Ex Parte No. 523]


Railroad Cost of Capital--1994

AGENCY: Interstate Commerce Commission.

ACTION: Notice of decision.

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SUMMARY: On June 16, 1995, the Commission served a decision to update 
its estimate of the railroad industry's cost of capital for 1994. The 
composite cost of capital rate for 1994 is found to be 12.2%, based on 
a current cost of debt of 7.9%, a cost of common equity capital of 
13.8%, a cost of preferred equity capital of 4.6%, and a 23.9% debt, 
74.3% common equity, 1.8% preferred 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 June 16, 1995.

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 1994 
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, [[Page 32025]] write to, call, or 
pick up in person from: Dynamic Concepts, Inc., Room 2229, Interstate 
Commerce Commission Building, 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 
Commission. No new reporting or other regulatory requirements are 
imposed, directly or indirectly, on small entities.

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

    Decided: June 5, 1995.

    By the Commission, Chairman Morgan, Vice Chairman Owen, and 
Commissioners Simmons and McDonald.
Vernon A. Williams,
Secretary.
[FR Doc. 95-14896 Filed 6-16-95; 8:45 am]
BILLING CODE 7035-01-P