West Virginia Code of State Rules
Agency 150 - Public Service Commission
Title 150 - EXEMPT LEGISLATIVE RULE PUBLIC SERVICE COMMISSION
Series 150-19 - Shippers Access To Lines And Facilities Of Rail Carriers
Section 150-19-3 - Determination of an Access Charge

Universal Citation: 150 WV Code of State Rules 150-19-3

Current through Register Vol. XLI, No. 13, March 29, 2024

3.1. Election of access charge methodology.

In its application an accessing shipper shall elect to have its access charge established under either the "stand alone cost" methodology, or the "carrier access" methodology. The shipper's election contained in its application shall be binding on the shipper for that and all subsequent applications filed by the shipper for use of the same access facilities within the thirty-six (36) months following the date on which the initial election is filed.

3.2. Change of access charge methodology.

Notwithstanding section 3.1. of these regulations, a shipper may elect to change the applicable access charge methodology by notifying the accessed carrier and undertaking to compensate the accessed carrier for the reasonable expenses incurred by the accessed carrier in calculating an access charge using the new methodology.

3.3. Stand alone cost methodology.

3.3.1. An access charge to an accessing shipper computed using the stand alone cost methodology seeks to give the accessed carrier the same contribution to its fixed costs that it would obtain if the accessed carrier charged a rate to the accessing shipper for transportation over the access facilities at the stand alone cost level established in the Interstate Commerce Commission's Coal Rate Guidelines Nationwide, Ex Parte 347 (Sub. No.1).

3.3.2. The access charge to an accessing shipper for use of the access facilities to move a specified annual tonnage of a commodity over the access facilities shall be equal to the stand alone cost to the accessing shipper of moving that specified annual tonnage of its own traffic over the access facilities, reduced by the accessed carrier's avoidable costs of serving that traffic over the access facilities. In its application for a shipper access order, the accessing shipper requesting an access charge calculated under a stand alone cost methodology shall specify the annual tonnage it wishes to move over the access facilities.

3.3.3. In calculating its proposed access charge using a stand alone cost methodology, the accessed carrier shall present a base case that makes the following simplifying assumptions;
a. all shippers of bulk commodities originating on, terminating on, or overhead to the access facilities are part of the stand alone group and have the same elasticity of demand for use of the access facilities;

b. all non-bulk traffic originating on, terminating on, or overhead to the access facilities can cover only variable costs;

c. the costs of off-line facilities needed to handle bulk commodities of other shippers originating on, terminating on, or overhead to the access facilities are fully compensated by the rates that are charged (or that could be charged) to the shippers of those commodities; and

d. the facilities needed to provide stand alone service to the accessing shipper (and to other shippers in the stand alone group) are the access facilities currently in place.

3.3.4. In accordance with the ICC's stand alone cost methodology:
a. the facilities needed to provide stand alone service to the shipper (and other shippers in the stand alone cost group) should be valued at their depreciated current cost; and

b. the return on the depreciated current cost of the access facilities should be equal to the ICC's most recent determination of the nominal current cost of capital to the railroad industry.

3.3.5. The accessed carrier's access charge proposals shall also identify the traffic-sensitive costs that the accessing shipper's use of the access facilities will cause the accessed carrier to incur and that are not included in the stand alone cost calculation. The access charge proposed shall propose a method for measuring such costs and compensating the accessed carrier.

3.3.6. In addition to the base case, the accessed carrier may show that one or more of the bases case assumptions is not appropriate for the specific case in issue, and the effect of that variation from the base case on the stand alone cost of the accessing shipper providing its own service.

3.3.7. Stand alone cost rates below jurisdictional levels.
3.3.7.1. If the stand alone cost of serving the accessing shipper or shipper group is less than one hundred eighty percent (180%) of the variable cost to the accessed carrier of providing the service, the stand alone cost of serving the accessing shipper or shipper group shall be conclusively presumed to equal one hundred eighty percent (180%) of the variable cost to the accessed carrier of providing the service.

3.3.7.2. For purposes of this section, the accessed carrier shall compute the variable cost of serving the shippers traffic in the same manner required or permitted under the Interstate Commerce Act to determine the jurisdictional threshold of the Interstate Commerce Commission's rate reasonableness jurisdiction.

3.4. Carrier Access Methodology.

3.4.1. An access charge to an accessing shipper calculated using the carrier access methodology seeks to afford the accessed carrier the same contribution to its fixed costs as it would obtain if the shipper were served by an accessing carrier with access charges calculated under the Commission's carrier access regulations.

3.4.2. If the accessing shipper elects to have its access charge calculated pursuant to the carrier access regulations, the accessed carrier shall assume as a base case that all shippers of bulk commodities have identical elasticities of demand for use of the access facilities. The accessed carrier may propose an alter native access charge predicated upon such shippers having different elasticities of demand for rail service, but shall explain, in detail, the basis for its conclusion.

3.4.3. Procedural rights of accessing shipper using carrier access methodology.
3.4.3.1. The accessing shipper shall have the same procedural rights as an accessing carrier including the right to propose a base case access charge predicated upon all shippers of bulk commodities on the access facilities having identical elasticities of demand for rail service over the access facilities, and an alternative access charge predicated upon those shippers of bulk commodities having differing elasticities of demand for rail service over the access facilities.

3.4.3.2. An accessing shipper shall not be entitled to receive from the accessed carrier any shipper specific data regarding the traffic of other shippers using the access facilities unless those shippers consent thereto. The accessing shipper shall be entitled to data showing gross-tonages of each commodity moved over the access facility in each of the three (3) preceding years.

3.4.4. The Commission will select either the base case access charge schedule or the alternative access charge schedule proposed by the accessed carrier, or the base case access charge schedule or alternative access charge schedule proposed by the accessing shipper.

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