Railroad Cost Recovery Procedures--Productivity Adjustment

Wed, Mar 25 2009 11:00:00 GMT

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 20032007 (5year) averaging period. This value represented no change from the current measure of 1.2% that was developed for the 20022006 period. The decision 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, 2009.\1\
\1\ Since 1989, the cost recovery procedures have required that the quarterly rail cost adjustment factor (RCAF) be adjusted for longrun changes in railroad productivity. The ICC Termination Act of 1995 continues this requirement (49 U.S.C. 10708, as revised). The longrun measure of productivity is computed using a 5year moving geometric mean. See Productivity AdjustmentImplementation, 9 I.C.C.2d 1072 (1993).

On February 23,

The Federal Register

Railroad Cost Recovery Procedures--Productivity Adjustment