[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