[Federal Register Volume 70, Number 125 (Thursday, June 30, 2005)]
[Notices]
[Pages 37894-37895]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-12900]


-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Ex Parte No. 558 (Sub-No. 8)]


Railroad Cost-of-Capital--2004

AGENCY: Surface Transportation Board.

ACTION: Notice of decision.

-----------------------------------------------------------------------

SUMMARY: On June 30, 2005, the Board served a decision to update its 
computation of the railroad industry's cost-of-capital for 2004. The 
composite after-tax cost-of-capital rate for 2004 is found to be 10.1%, 
based on a current cost-of-debt of 5.25%; a cost of common equity 
capital of 13.16%; and a capital structure mix comprised of 38.5% debt 
and 61.5% common equity. 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 30, 2005.

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 ASAP Document Solutions by 
calling 202-306-4004 (assistance for the hearing impaired is available 
through FIRS at 1-800-877-8339), or by e-mail at [email protected].

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 21, 2005.


[[Page 37895]]


    By the Board, Chairman Nober, Vice Chairman Buttrey, and 
Commissioner Mulvey.
Vernon A. Williams,
Secretary.
[FR Doc. 05-12900 Filed 6-29-05; 8:45 am]
BILLING CODE 4915-01-P