|SURFACE TRANSPORTATION BOARD DECISION DOCUMENT|
|INDEXING THE ANNUAL OPERATING REVENUES OF RAILROADS|
|Director, Office Of Economics|
|DECISION PROVIDED NOTICE OF THE ANNUAL INFLATION-ADJUSTED INDEX FACTORS FOR 2018.|
| 70 KB|
|Approximate download time at 28.8 kb: 1 Minutes|
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|Full Text of Decision|
SURFACE TRANSPORTATION BOARD
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
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.
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:
 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).