97-13161. Railroad Cost Recovery ProceduresProductivity Adjustment

[Federal Register Volume 62, Number 97 (Tuesday, May 20, 1997)]
[Notices]
[Page 27655]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-13161]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board
[STB Ex Parte No. 290 (Sub No. 4)]


Railroad Cost Recovery Procedures--Productivity Adjustment

AGENCY: Surface Transportation Board.

ACTION: Clarification of STB decision.

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SUMMARY: The Western Coal Traffic League (League), an association of 
utility coal shippers, seeks clarification of our inclusion of 
approximately $24 million in below-the-line special charges for the 
Illinois Central Railroad (IC) and Soo Line Railroad (Soo) in the 1995 
productivity decision served February 18, 1997.1 The League 
asserts that a railroad-related below-the-line special charge for the 
Southern Pacific Railroad (SP) was not included in the 1994 
productivity calculation.2
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    \1\ Notice of availability of the Board's full decision was 
published at 62 FR 7294, (February 18, 1997).
    \2\ Productivity Adjustment-Implementation, 9 I.C.C.2d 1072, 
1082 (1993), requires the inclusion of railroad-related below-the-
line special charges in the productivity calculation.
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    We included the 1995 below-the-line special charges of IC and Soo 
in the productivity calculation because the information contained in 
the railroads' Annual Reports and interviews conducted by our audit 
staff with the railroads' accounting personnel convinced us the 1995 
below-the-line special charges were railroad-related expenses. The 
railroads incurred these below-the-line special charges for prepayment 
of debt on railroad property and equipment. Clearly, the payment of 
debt on rail properties is railroad-related and is properly included in 
the productivity calculation.
    The League contrasts our action here with the finding that SP's 
1994 below-the-line special charge was not rail-related. On further 
review, we find that the 1994 SP below-the-line special charge of 
$9,872,000 was for post-employment benefits for former railroad 
employees. We agree with the League that this special charge is 
railroad-related and should be included in the 1994 productivity 
calculation. However, because of the small size of this below-the-line 
special charge, its inclusion in the 1994 productivity calculation 
would not change the productivity measure.

EFFECTIVE DATE: May 20, 1997.

FOR FURTHER INFORMATION CONTACT: H. Jeff Warren, [phone]. TDD 
for the hearing impaired: [phone].
    It is ordered:
    1. The inclusion of the below-the-line special charges of the IC 
and Soo in the 1995 productivity calculation is affirmed.
    2. The 1994 below-the-line special charge of the SP is 
appropriately included in the 1994 productivity measure.
    3. This decision is effective on [service data].
    This action will not significantly affect either the quality of the 
human environment or energy conservation.

    Decided: May 7, 1997.

    By the Board, Chairman Morgan and Vice Chairman Owen.
Vernon A. Williams,
Secretary.
[FR Doc. 97-13161 Filed 5-19-97; 8:45 am]
BILLING CODE 4915-00-P