SURFACE TRANSPORTATION BOARD ISSUES NOTICE OF PROPOSED RULEMAKING ON SIMPLIFIED STANDARDS FOR RAIL RATE CASES

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>From the Surface Transportation Board, Washington, D.C.
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The Surface Transportation Board announced today that it has instituted a
rulemaking proceeding to revise and clarify its existing simplified
guidelines available for those rail rate cases in which a full stand-alone
cost (SAC) presentation is too costly, given the value of the case.


 The Board continues to pursue changes to the simplified guidelines that
 would achieve the dual statutory goals of providing captive shippers
 meaningful access to regulatory remedies for rail rates that are
 unreasonable, while recognizing the need for railroads to earn a
 reasonable return on their investments so that they will have the
 resources to make the investment needed to continue to serve the
 transportation needs of their customers.  Therefore, the Board proposes
 to: (1) create a simplified SAC procedure to use in medium-size rate
 disputes; (2) retain the current "Three-Benchmark" method of the existing
 simplified guidelines, with certain modifications, for small rate
 disputes; and (3) establish eligibility presumptions based on the maximum
 value of the case to distinguish between large, medium-size, and small
 rail rate disputes.


 The STB's decision initiating the rulemaking in Simplified Standards For
 Rail Rate Cases, STB Ex Parte No. 646 (Sub-No. 1)(
 http://www.stb.dot.gov/decisions/readingroom.nsf/WebDecisionID/37206?OpenDocument
 )
 , is available for viewing and downloading via the Board's Web site at
 http://www.stb.dot.gov, under "E-Library," then under "Decisions &
 Notices," beneath the date "7/28/06."  A printed copy of the Board's
 decision also is available for a fee by contacting ASAP Document
 Solutions, 9332 Annapolis Rd., Suite 103, Lanham, MD 20706, telephone
 (202) 306-4004, or via .


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