SURFACE TRANSPORTATION BOARD DECISION DOCUMENT
    Decision Information

Docket Number:  
EP_748_0

Case Title:  
INDEXING THE ANNUAL OPERATING REVENUES OF RAILROADS

Decision Type:  
Decision

Deciding Body:  
Director, Office Of Economics

    Decision Summary

Decision Notes:  
DECISION PROVIDED NOTICE OF THE ANNUAL INFLATION-ADJUSTED INDEX FACTORS FOR 2018.

    Decision Attachments

70 KB


Approximate download time at 28.8 kb: 1 Minutes

Note:
If you do not have Acrobat Reader, or if you have problems reading our files with your current version of Acrobat Reader, the latest version of Acrobat Reader is available free at www.adobe.com.

    Full Text of Decision

47061                                        SERVICE DATE – JUNE 14, 2019

OE

 

SURFACE TRANSPORTATION BOARD

 

DECISION

 

Docket No. EP 748

 

INDEXING THE ANNUAL OPERATING REVENUES OF RAILROADS

 

Decided:  June 10, 2019

 

The Surface Transportation Board (Board or STB) is publishing the annual inflation-adjusted index and deflator factors for 2018.  The deflator factors are used by the railroads to adjust their gross annual operating revenues for classification purposes.  This indexing methodology ensures that railroads are classified based on real business expansion and not on the effects of inflation.  Classification is important because it determines the extent to which individual railroads must comply with the Board’s reporting requirements.

 

The Board’s deflator factors are based on the annual average Railroad Freight Price Index developed by the Bureau of Labor Statistics.  The Board’s deflator factor is used to deflate revenues for comparison with established revenue thresholds.

 

Application of the annual deflator factors results in the following annual revenue thresholds:

 

Railroad Revenue Thresholds

 

Year

Factor

Class I

Class II

2014

0.5255

475,754,803

38,060,384

2015

0.5460

457,913,998

36,633,120

2016

0.5585

447,621,226

35,809,698

2017

0.5390

463,860,933

37,108,875

2018

0.5103

489,935,956

39,194,876

 

The annual inflation-adjusted index factors for 2018 are effective January 1, 2018.  Notice of this decision will be published in the Federal Register.

 

            By the Board, Dr. William J. Brennan, Director, Office of Economics.

 


Appendix

 

Railroad Inflation-Adjusted Index and Deflator Factor Table

 

The base year for railroads is 1991.  The inflation-adjusted indexes and deflator factors are presented as follows:  

 

Year

Index

Deflator

1991

409.50

100.00[1]

1992

411.80

99.45

1993

415.50

98.55

1994

418.80

97.70

1995

418.17

97.85

1996

417.46

98.02

1997

419.67

97.50

1998

424.54

96.38

1999

423.01

96.72

2000

428.64

95.45

2001

436.48

93.73

2002

445.03

91.92

2003

454.33

90.03

2004

473.41

86.40

2005

522.41

78.29

2006

567.34

72.09

2007

588.30

69.52

2008

656.78

62.28

2009

619.73

66.00

2010

652.29

62.71

2011

708.80

57.71

2012

740.61

55.23

2013

764.19

53.53

2014

778.41

52.55

2015

749.22

54.60

2016

732.38

55.85

2017

758.95

53.90

2018

801.61

51.03

 



[1]  In Montana Rail Link, Inc., & Wisconsin Central Ltd., Joint Petition for Rulemaking with Respect to 49 C.F.R. Part 1201, 8 I.C.C.2d 625 (1992), the Board’s predecessor, the Interstate Commerce Commission, raised the revenue classification level for Class I railroads from $50 million (1978 dollars) to $250 million (1991 dollars), effective for the reporting year beginning January 1, 1992.  The Class II threshold was also raised from $10 million (1978 dollars) to $20 million (1991 dollars).