[Federal Register Volume 68, Number 118 (Thursday, June 19, 2003)]
[Notices]
[Page 36872]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-15505]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Ex Parte No. 558 (Sub-No. 6)]


Railroad Cost of Capital--2002

AGENCY: Surface Transportation Board, DOT.

ACTION: Notice of decision.

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SUMMARY: On June 11, 2003 the Board served a decision to update its 
computation of the railroad industry's cost of capital for 2002. The 
composite after-tax cost of capital rate for 2002 is found to be 9.8%, 
based on a current cost of debt of 6.0%; a cost of common equity 
capital of 12.6%; a cost of preferred equity capital of 6.3%; and a 
capital structure mix comprised of 41.2% debt, 56.7% common equity, and 
2.1% preferred equity capital. 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 11, 2003.

FOR FURTHER INFORMATION CONTACT: Leonard J. Blistein, (202) 565-1529. 
(Federal Information Relay Service (FIRS) for the hearing impaired: 1 
(800) 877-8339.)

SUPPLEMENTARY INFORMATION: The cost of capital finding in this decision 
may be used for a variety of regulatory purposes. The Board's decision 
is posted on the Board's Web site, http://www.stb.dot.gov. In addition, 
copies of the decision may be purchased from Da-2-Da Legal Copy Service 
by calling 202-293-7776 (assistance for the hearing impaired is 
available through FIRS at 1-800-877-8339) or visiting Suite 405, 1925 K 
Street, NW., Washington, DC 20006.

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: June 11, 2003.

    By the Board, Chairman Nober.
Vernon A. Williams,
Secretary.
[FR Doc. 03-15505 Filed 6-18-03; 8:45 am]
BILLING CODE 4915-00-P