1 reply to this topic

[CNJRoss]

STB news release, 9/19:

SURFACE TRANSPORTATION BOARD AWARDS CONTRACT FOR STUDY OF RAILROAD RATE REGULATION ALTERNATIVES


The Surface Transportation Board announced today that it has awarded a contract to InterVISTAS Consulting LLC (InterVISTAS) to conduct an independent analysis that evaluates potential alternative rate regulation approaches, with the goal of reducing the time, cost and complexity of rate reasonableness complaints brought before the Board.

Under the contract, InterVISTAS will conduct an independent analysis entitled Railroad Rate Regulation Study. The focus of the study will be on alternatives that are likely to reduce the time, complexity and expenses that historically have been associated with the Stand-Alone Cost methodology, without diminishing the Board's ability to achieve outcomes that are fair and reasonable to shippers and railroads.

The contract was awarded through a competitive bid process in accordance with Federal procurement regulations and procedures. The Board expects that the study will be completed and made public in late 2015.

InterVISTAS is an international transportation professional services firm with offices in the United States, Canada, Europe and South America. InterVISTAS has multidisciplinary expertise in transportation industry economic analysis, modeling, forecasting, and network development, including experience involving freight rail, airlines and ferries. InterVISTAS also will be partnering with firms that have additional economic, financial planning, technical and legal expertise in the railroad and utility industries.

###

[CNJRoss]

_{STB news release, 9/22/16:}

 

 

INDEPENDENT STUDY ON RATE CASE METHODOLOGY ALTERNATIVES RELEASED

 

The Surface Transportation Board announced today that the report on rate case methodology pursuant to Section 15 of the Surface Transportation Board Reauthorization Act of 2015, Public Law 114-110 is complete and available for viewing on the agency’s website.


The Board commissioned a study from InterVISTAS Consulting LLC to provide an independent assessment of the Board’s stand-alone cost (SAC) rate reasonableness methodology. Among other things, the scope of the work required InterVISTAS to look for alternative methodologies to SAC that could be used to reduce the time, complexity, and expense historically involved in rate cases; determine whether SAC is sufficient for large rate cases; and whether the Board’s simplified methodologies were appropriate alternatives to SAC.


The Board plans to hold an economic roundtable next month and has invited independent economists from InterVISTAS, the Transportation Research Board of the National Academy of Sciences, Georgetown University, and the Board’s economists to engage in a public discussion of the issues and conclusions contained in the InterVISTAS report. Chairman Elliott also hopes to schedule a public hearing after the roundtable for all stakeholders and interested parties to participate in this important discourse. The Board will deliberate on a regulatory path forward concerning large rate cases after consideration of expert and stakeholder views in open and transparent fora.


“I am pleased that the InterVISTAS report is complete, and that the Board and industry stakeholders will have an opportunity to review and discuss its findings on rate reasonableness methodologies,” said Chairman Elliott. “I take very seriously the impact that our rate case proceedings and methodologies have on industry and commerce. I look forward to thoughtful input from the transportation industry and a fruitful exchange of ideas as we forge a way ahead on this complex topic.”


To view the InterVISTAS report, please click here.

 

#  #  #