Railroad Cost Recovery Procedures-Productivity Adjustment
In a decision served on February 13, 2015, we proposed to adopt 1.007 (0.7% per year) as the measure of average change in railroad productivity for the 2009-2013 (5-year) averaging period. This value represents a decrease of 0.3% from the average for the 2008-2012 period. The Board's February 13, 2015 decision in this proceeding stated that comments may be filed addressing any perceived data and computational errors in our calculation. It also stated that, if there were no further action taken by the Board, the proposed productivity adjustment would become effective on March 1, 2015.
Railroad Cost of Capital-2014
The Board is instituting a proceeding to determine the railroad industry's cost of capital for 2014. The decision solicits comments on the following issues: (1) The railroads' 2014 current cost of debt capital; (2) the railroads' 2014 current cost of preferred equity capital (if any); (3) the railroads' 2014 cost of common equity capital; and (4) the 2014 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 Railroad Cost of Capital2013, EP 558 (Sub-No. 17) (STB served July 31, 2014).