STB Proposes New Rate Review Rules

The U.S. Surface Transportation Board this week has proposed a new set of rules that would govern rate review procedures.

The proposed rules would establish a new rate review option for smaller cases, the final offer rate review, which would use procedural limitations to contain the costs and complexities of a rate case.

The board also has proposed a streamlined market dominance process that could be used in any rate review proceeding.

In a news release, the STB said these changes are designed to make the procedures “more accessible, efficient, and transparent, including for small customers.”

Public comments on the proposed rule changes are due by Nov. 12, and replies are due by Jan. 10, 2020.

The rule changes stem from a Rate Reform Task Force that issued recommendations in April.

The task force raised questions about the STB’s revenue adequacy process that will be addressed at a Dec. 12 hearing.

Among other recommendations, the task force suggested the board establish a definition of long-term revenue adequacy and consider providing different remedies for rate cases involving carriers that are long-term revenue adequate.

Railroads will be given the opportunity to testify during that hearing on the position of the Association of American Railroads that revenue adequacy reflects the industry’s financial soundness and stability under the current regulatory scheme and must not be a trigger for new government intervention and rate regulation.

Tags: STB hearings, STB rulemaking, STB rules and regulations, STB rules making, U.S. Surface Transportation Board