Mr. Robert Rosenberg

GLG News by Mr. Robert Rosenberg, Partner

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Surface Transportation Board Proposes Revising Railroad Cost of Capital Methodology

August 16, 2007

Analysis of:STB Notice of Proposed Rulemaking on Railroad Cost of Capital Methodology | www.stb.dot.gov

The Surface Transportation Board has proposed to change its methodology for calculating the railroad industry cost of capital. The cost of capital is used for several regulatory purposes. Lowering the cost of capital, as proposed by the agency, could increase the rate relief available to captive shippers.

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