Railroad Cost Recovery Procedures-Productivity Adjustment
In a decision served on February 5, 2009, we proposed to adopt 1.012 (1.2% per year) as the measure of average change in railroad productivity for the 2003-2007 (5-year) averaging period. This value represented no change from the current measure of 1.2% that was developed for the 2002-2006 period. The decision stated that comments
Union Pacific Railroad Company-Petition for Declaratory Order
In response to a petition filed by Union Pacific Railroad Company (UP) on February 18, 2009, the Board is instituting a declaratory order proceeding under 49 U.S.C. 721 and 5 U.S.C. 554(e).\1\ UP requests that the Board determine the extent of the common carrier obligation to quote rates for new, lengthy movements of chlorine, a toxic inhalation hazard (TIH), where the transportation would require movement through High Threat Urban Areas (HTUAs) \2\ and other large communities to destinations where, according to UP, an ample supply of chlorine is available from nearby sources. The Board seeks public comment on this matter.
Union Pacific Railroad Company-Temporary Trackage Rights Exemption-BNSF Railway Company
The Board, under 49 U.S.C. 10502, revokes the class exemption as it pertains to the modified trackage rights described in STB Finance Docket No. 34554 (Sub-No. 10) \1\ to permit the trackage rights to expire on or about December 31, 2009, in accordance with the agreement of the parties,\2\ subject to the employee protective conditions set forth in Oregon Short Line R. Co.AbandonmentGoshen, 360 I.C.C. 91 (1979).
Railroad Cost of Capital-2008
The Board is instituting a proceeding to determine the railroad industry's cost of capital for 2008. The decision solicits comments on: (1) The railroads' 2008 current cost of debt capital; (2) the railroads' 2008 current cost of preferred stock equity capital (if any); (3) the railroads' 2008 cost of common stock equity capital; and (4) the 2008 capital structure mix of the railroad industry on a market value basis. Comments should focus on the various cost of capital components listed above using the same methodology followed in the Cost 07 decision, with the exception of applying the Ex Parte No. 664 (Sub No. 1) decision in calculating the cost-of-equity.