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Railroad Cost-of-Capital-2003

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Surface Transportation Board, DoT.


Notice of decision.


On June 22, 2004, the Board served a decision to update its computation of the railroad industry's cost-of-capital for 2003. The composite after-tax cost-of-capital rate for 2003 is found to be 9.4%, based on a current cost-of-debt of 5.0%; a cost of common Start Printed Page 36162equity capital of 12.7%; and a capital structure mix comprised of 42.8% debt and 57.2% common equity. The cost-of-capital finding made in this proceeding will be used in a variety of Board proceedings.


Effective Date: This action is effective June 28, 2004.

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Leonard J. Blistein, (202) 565-1529. (Federal Information Relay Service (FIRS) for the hearing impaired: 1 (800) 877-8339).

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The cost-of-capital finding in this decision may be used for a variety of regulatory purposes. The Board's decision is posted on the Board's Web site, In addition, copies of the decision may be purchased from ASAP Document Solutions by calling 301-577-2600 or by e-mailing

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.

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Authority: 49 U.S.C. 10704(a).

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Decided: June 22, 2004.

By the Board, Chairman Nober, Vice Chairman Mulvey, and Commissioner Buttrey.

Vernon A. Williams,


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[FR Doc. 04-14590 Filed 6-25-04; 8:45 am]