Federal Register: June 13, 2000 (Volume 65, Number 114)
DOCID: FR Doc 00-14879
DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
STB ID: [STB Ex Parte No. 558 (Sub-No. 3)]
NOTICE: NOTICES
ACTION: Rail carriers:
DOCUMENT ACTION: Notice of decision.
SUBJECT CATEGORY:
Railroad Cost of Capital--1999
EFFECTIVE DATES: This action is effective June 12, 2000.
DOCUMENT SUMMARY:
On June 12, 2000 the Board served a decision to update its computation of the railroad industry's cost of capital for 1999. The composite aftertax cost of capital rate for 1999 is found to be 10.8%, based on a current cost of debt of 7.2%; a cost of common equity capital of 12.9%; a cost of preferred equity capital of 6.3%; and a capital structure mix comprised of 35.5% debt, 62.7% common equity, and 1.8% preferred equity. The cost of capital finding made in this proceeding will be used in a variety of Board proceedings.
SUMMARY:
Cost of capital—; Railroad industry's 1999 decision,
SUPPLEMENTAL INFORMATION
The cost of capital finding in this decision shall be used for a variety of regulatory purposes. To obtain a copy of the full decision, write to, call, or pick up in person from: DaToDa Office Solutions., Room 405, 1925 K Street, NW., Washington, DC 20423. Telephone: (202) 4665530. [Assistance for the hearing impaired is available through TDD services (202) 5651695.] The decision is also available on the Board's internet site at www.stb.dot.gov. Environmental and Energy Considerations
This action will not significantly affect either the quality of the human environment or the conservation of energy resources.
Regulatory Flexibility Analysis
Pursuant to 5 U.S.C. 605(b), we conclude that our action in this
proceeding will not have a significant economic impact on a substantial
number of small entities. The purpose and effect of this action are to
update the annual railroad industry cost of capital finding by the
Board. No new reporting or other regulatory requirements are imposed, directly or indirectly, on small entities.
Authority: 49 U.S.C. 10704(a).
Decided: June 6, 2000.
By the Board, Chairman Morgan, Vice Chairman Burkes, and Commissioner Clyburn.
Vernon A. Williams,
Secretary.
[FR Doc. 0014879 Filed 61200; 8:45 am]
BILLING CODE 491500P
FOR FURTHER INFORMATION CONTACT
Leonard J. Blistein, (202) 565-1529. [TDD for the hearing impaired: (202) 5651695.]