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SURFACE TRANSPORTATION BOARD MAKES RAIL REVENUE ADEQUACY DETERMINATION FOR 2010
The Surface Transportation Board announced today that it has made its annual determinations of revenue adequacy for the Nation's Class I freight railroads (the largest) for 2010. The Board found that one railroad, the Union Pacific Railroad Company, was revenue adequate in 2010. All other Class I freight railroads were found to be revenue inadequate for that year.
A railroad is considered to be revenue adequate, under 49 U.S.C. 10704(a), if it achieves a rate of return on net investment equal to at least the current cost of capital for the railroad industry for 2010, which the Board determined to be 11.03%. Congress directed the Board to conduct such revenue adequacy determinations on an annual basis.
The Board's decision in the case,
Railroad Revenue Adequacy—2010 Determination, Docket No. EP 552 (Sub-No. 15)
, can be found on the Board's website,