Replacement Cost as Rate Base: The Recapture Experience

In October 2008, the Surface Transportation Board (STB) rejected an Association of American Railroads (AAR) proposal that replacement costs as a measure of railroad assets, rather than depreciated original cost, be used in the determination of railroad revenue adequacy under 49 USC §10704. The STB did so largely because of what it regarded as insuperable practical difficulties in ascertaining the value of excess capacity assets that should not be included in replacement costs. In the 1920s, under a very different statutory regime, the Interstate Commerce Commission (ICC) was indeed required to consider replacement costs, among other factors, in determining railroad revenue adequacy. In light of the AAR's recent proposal, this paper looks at how the replacement cost measure of transportation assets actually worked in practice earlier under the jurisdiction of the ICC.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/oclc/31144651
• Authors:
  • Emery, Robert A
• Publication Date: 2010

Language

• English

Media Info

• Media Type: Print
• Pagination: pp 235-239
• Serial:
  • Journal of Transportation Law, Logistics and Policy
  • Volume: 77
  • Issue Number: 3
  • Publisher: Association for Transportation Law, Logistics and Policy
  • ISSN: 1078-5906
  • Serial URL: http://www.atlp.org/journal.html

Subject/Index Terms

• TRT Terms: Policy, legislation and regulation; Railroads; Rates; Revenues
• Identifier Terms: Association of American Railroads; Surface Transportation Board; U.S. Interstate Commerce Commission
• Uncontrolled Terms: Replacement costs
• Subject Areas: Policy; Railroads;

Filing Info

• Accession Number: 01342169
• Record Type: Publication
• Files: TRIS
• Created Date: Jun 21 2011 9:28AM