held that the practice of “double dipping,” i.e., applying to the same traffic both a fuel surcharge and a rate increase that is based on a cost index that includes a fuel cost component, such as the Railroad Cost Adjustment Factor (RCAF), is an unreasonable practice.held that computing rail fuel surcharges as a percentage of a base rate is an unreasonable practice, as there is no reasonable nexus between such a surcharge and actual fuel consumption.In its decision, the Board prescribed certain conditions on how rail carriers apply fuel surcharges. 26, 2007), the Board inquired into and made findings regarding rail carrier practices related to fuel surcharges. In Rail Fuel Surcharges, EP 661 (STB served Jan. The manner in which fuel surcharges are assessed and calculated differs between carriers, but in general, they are designed to increase or decrease as the cost of fuel increases or decreases. The Annual R-1 Reports and Schedules 250 for all Class I railroads are available here.Ī fuel surcharge is a separately identified component of the total rate that is charged for the involved transportation and that is designed to recoup increases in the carrier’s fuel costs. More information on the concept of revenue adequacy is available under the “Revenue Adequacy” tab above. § 10704(a) if it achieves a ROI equal to at least the current cost of capital for the railroad industry. A railroad is considered revenue adequate under 49 U.S.C. This schedule is used to develop rate of return on net investment (ROI) for use in revenue adequacy determinations. Within the R-1 reports is a section titled Schedule 250.
To review the current certification procedures, click here. See Certification of Railroad Annual Report R-1 By Independent Accountant, 1 I.C.C.2d 902, Docket No. Each Class I railroad is required to submit a report from an independent accountant stating that specified data in the railroad’s R-1 have been examined, using agreed-upon procedures, and have been found to be in compliance with the Uniform System of Accounts for Railroad Companies, 49 C.F.R. Click for Excel version or PDF.Ĭlass I railroads are required to file an Annual Report of Finances and Operations, known as the R-1, that contains information about their finances and operating statistics. In addition, a chart showing the Board’s annual revenue adequacy determinations going back to 2000 is available below. More information on how this adjustment was made can be found in the Board’s Dec. * Note that the Board made a one-time adjustment to its 2017 revenue adequacy determination to remove the accounting impacts of The Tax Cuts and Jobs Acts on rail carriers’ deferred tax liability. Railroad Revenue Adequacy - 2016 Determination, EP 552 (Sub-No.Railroad Revenue Adequacy - 2017 Determination, EP 552 (Sub-No.Railroad Revenue Adequacy - 2018 Determination, EP 552 (Sub-No.Railroad Revenue Adequacy - 2019 Determination, EP 552 (Sub-No.Railroad Revenue Adequacy - 2020 Determination, EP 552 (Sub-No.Below are links to the last four years of proceedings. (Each sub-docket within that proceeding is for a different year.) To view those proceedings, use the agency’s Search STB Records tool. The annual calculation is performed in proceeding EP 552. As such, agency precedent establishes that in any individual rate proceeding, evidence other than the annual determinations may also be introduced. However, it should be noted that in the context of a rate reasonableness case, the Board has stated that revenue adequacy is a long-term concept. These annual determinations are used to determine whether a rail carrier should be deemed revenue adequate for purposes of assessing whether the carrier’s rates are reasonable. For purposes of the annual determination, the agency deems a railroad revenue adequate if it achieves a return on investment equal to at least the current cost of capital for the railroad industry. The concept of revenue adequacy is defined at 49 U.S.C. The Board is required by statute to make an annual revenue adequacy determination for each Class I rail carrier.