[Federal Register Volume 64, Number 95 (Tuesday, May 18, 1999)] [Notices] [Page 27035] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 99-12468] [[Page 27035]] ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Ex Parte No. 558 (Sub-No. 2)] Railroad Cost of Capital--1998
Agency
Surface Transportation Board, Transportation.
Action
Notice of decision.
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Summary
On May 17, 1999, the Board served a decision to update its computation of the railroad industry's cost of capital for 1998. The composite after-tax cost of capital rate for 1998 is found to be 10.7%, based on a current cost of debt of 6.64%; a cost of common equity capital of 13.11%; a cost of preferred equity capital of 6.19%; and a capital structure mix comprised of 36.01% debt, 62.64% common equity, and 1.35% preferred equity. The cost of capital finding made in this proceeding will be used in a variety of Board proceedings.
EFFECTIVE DATE: This action is effective May 17, 1999.
For Further Information Contact
Leonard J. Blistein, (202) 565-1529. [TDD for the hearing impaired: (202) 565-1695.]
Supplementary Information
The cost of capital finding in this decision shall be used for a variety of regulatory purposes. To obtain a copy of the full decision, write to, call, or pick up in person from: DC NEWS & DATA, INC., Room 210, 1925 K Street, NW, Washington, DC 20423. Telephone: (202) 289-4357. [Assistance for the hearing impaired is available through TDD services (202) 565-1695.] The decision is also available on the Board's internet site at www.stb.dot.gov.
Environmental and Energy Considerations
This action will not significantly affect either the quality of the human environment or the conservation of energy resources.
Regulatory Flexibility Analysis
Pursuant to 5 U.S.C. 605(b), we conclude that our action in this proceeding will not have a significant economic impact on a substantial number of small entities. The purpose and effect of this action are to update the annual railroad industry cost of capital finding by the Board. No new reporting or other regulatory requirements are imposed, directly or indirectly, on small entities.
Authority: 49 U.S.C. 10704(a).
Decided: May 6, 1999.
By the Board, Chairman Morgan, Vice Chairman Clyburn, and Commissioner Burkes. Vernon A. Williams, Secretary. [FR Doc. 99-12468 Filed 5-17-99; 8:45 am] BILLING CODE 4915-00-P