Surface Transportation Board: Railroad Cost of Capital 2025
Summary
The Surface Transportation Board (STB) has initiated a proceeding to determine the railroad industry's cost of capital for 2025. The notice solicits comments on key financial components including cost of debt, preferred equity, common equity, and the capital structure mix.
What changed
The Surface Transportation Board (STB) has officially opened a proceeding to establish the railroad industry's cost of capital for the year 2025. This notice specifically requests comments on the current cost of debt, preferred equity (if applicable), common equity, and the market-value based capital structure mix for the railroad industry in 2025. This determination is crucial for rate-making and financial oversight within the sector.
Regulated entities, particularly railroads, must prepare and submit statements regarding these financial components by the specified deadlines. Other interested parties also have an opportunity to provide input. Railroads will have a final opportunity to submit rebuttal statements. Compliance with these procedural requirements is essential for influencing the final determination of the cost of capital, which directly impacts future rate adjustments and financial planning.
What to do next
- Submit notice of intent to participate by May 1, 2026
- Railroads to submit statements by May 22, 2026
- Other interested persons to submit statements by June 12, 2026
- Railroads to submit rebuttal statements by July 2, 2026
Source document (simplified)
Content
ACTION:
Notice.
SUMMARY:
The Board is instituting a proceeding to determine the railroad industry's cost of capital for 2025. The decision solicits
comments on the following issues: the railroads' 2025 current cost of debt capital, the railroads' 2025 current cost of preferred
equity capital (if any), the railroads' 2025 cost of common equity capital, and the 2025 capital structure mix of the railroad
industry on a market value basis.
DATES:
Notices of intent to participate are due by May 1, 2026. Statements of the railroads are due by May 22, 2026. Statements of
other interested persons are due by June 12, 2026. Rebuttal statements by the railroads are due by July 2, 2026.
ADDRESSES:
Comments may be filed with the Board via e-filing on the Board's website.
FOR FURTHER INFORMATION CONTACT:
Pedro Ramirez at (202) 915-0862. If you require an accommodation under the
Americans with Disabilities Act, please call (202) 245-0245.
SUPPLEMENTARY INFORMATION:
The decision in this proceeding is posted at www.stb.gov.
Authority: 49 U.S.C. 10704(a).
Decided: March 16, 2026. By the Board, Board Members Fuchs, Hedlund, and Schultz.
Eden Besera, Clearance Clerk. [FR Doc. 2026-05455 Filed 3-19-26; 8:45 am] BILLING CODE 4915-01-P
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