[Federal Register Volume 72, Number 12 (Friday, January 19, 2007)]
[Notices]
[Pages 2591-2592]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-655]


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

DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Ex Parte No. 664]


Methodology To Be Employed in Determining the Railroad Industry's 
Cost of Capital

AGENCY: Surface Transportation Board, DOT.

ACTION: Notice of Public Hearing.

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

SUMMARY: The Surface Transportation Board will hold a public hearing 
beginning at 9:30 a.m. on Thursday, February 15, 2007, at its offices 
in Washington, DC. The purpose of the hearing will be for members of 
the public to present their views to assist the Board in its 
examination of the appropriate methodology to be employed in 
determining the railroad industry's estimated cost of capital to be 
used in future annual cost-of-capital determinations. Persons wishing 
to speak at the hearing should notify the Board in writing.

DATES: The public hearing will take place on Thursday, February 15, 
2007. Any person wishing to speak at the hearing should file with the 
Board a written notice of intent to participate and should identify the 
party, the proposed speaker, the time requested, and the topic(s) to be 
covered, as soon as possible but no later than February 5, 2007. Each 
speaker should also file with the Board a written summary of his/her 
testimony by February 12, 2007. Written submissions by interested 
persons who do not wish to appear at the hearing will also be due by 
February 12, 2007.

ADDRESSES: All notices of intent to participate and testimony may be 
submitted either via the Board's e-filing

[[Page 2592]]

format or in the traditional paper format. Any person using e-filing 
should comply with the Board's www.stb.dot.gov Web site, at the ``E-
FILING'' link. Any person submitting a filing in the traditional paper 
format should send an original and 10 copies of the filing to: Surface 
Transportation Board, Attn: STB Ex Parte No. 664, 1925 K Street, NW., 
Washington, DC 20423-0001.

FOR FURTHER INFORMATION, CONTACT: Paul Aguiar, (202) 565-1527. 
[Assistance for the hearing impaired is available through the Federal 
Information Relay Service (FIRS) at: (800) 877-8339.]

SUPPLEMENTARY INFORMATION: By an advance notice of proposed rulemaking 
served on September 20, 2006, the Board sought comments on the 
appropriate methodology to be employed in determining the railroad 
industry's estimated cost of capital. The Board will hold a public 
hearing to provide a forum for interested persons to provide views and 
information about the Board's cost-of-capital calculation. Participants 
can also comment on how evidence should be submitted and analyzed in 
future cost-of-capital proceedings.
    The annual determination of the railroad industry's cost of capital 
is used in evaluating the adequacy of railroad revenues each year. This 
information can also be used in other Board proceedings, such as those 
involving the prescription of maximum reasonable rate levels. Section 
205 of the Railroad Revitalization and Regulatory Reform Act of 1976 
(4R Act) created the requirement for the Board to establish and 
maintain standards for railroad revenue adequacy. Subsequent laws 
(including the ICC Termination Act of 1995) have retained this 
requirement. Thus, each year the Board makes a determination of which 
railroads are or are not revenue adequate.
    The Board uses the Discounted Cash Flow (DCF) methodology to 
calculate the cost of equity, which in turn is used to calculate the 
cost of capital. Parties participating in this hearing should discuss 
any changes in the underlying railroad industry economic conditions and 
whether those changes suggest the need to change the methodology used 
by the Board. The Board invites information on the shortcomings of any 
proposed methodology and the current DCF method used in calculating 
cost of capital.
    Date of Hearing. The hearing will begin at 9:30 a.m. on Thursday, 
February 15, 2007, in the 7th floor hearing room at the Board's 
headquarters in Washington, DC, and will continue, with short breaks if 
necessary, until every person scheduled to speak has been heard.
    Notice of Intent To Participate. Any person wishing to speak at the 
hearing should file with the Board a written notice of intent to 
participate, and should identify the party, the proposed speaker, the 
time requested, and topic(s) to be covered, as soon as possible, but no 
later than February 5, 2007.
    Testimony. Each speaker should file with the Board a written 
summary of his/her testimony by February 12, 2007. Also, any interested 
person who wishes to submit a written statement without appearing at 
the February 15 hearing should file that statement by February 12, 
2007.
    Board Releases and Live Audio Available Via the Internet. Decisions 
and notices of the Board, including this notice, are available on the 
Board's Web site at www.stb.dot.gov. This hearing will be available on 
the Board's Web site by live audio streaming. To access the hearing, 
click on the ``Live Audio'' link under ``Information Center'' at the 
left side of the home page beginning at 9:30 a.m. on February 15, 2007.
    This action will not significantly affect either the quality of the 
human environment or the conservation of energy resources.

    Dated: January 12, 2007.
Vernon A. Williams,
Secretary.
 [FR Doc. E7-655 Filed 1-18-07; 8:45 am]
BILLING CODE 4915-01-P