The Surface Transportation Board announced Feb. 27 that it has instituted a rulemaking proceeding to address major issues regarding the proper application of the stand-alone cost (SAC) test in rail rate cases and the proper calculation of the floor for any rail rate relief.

Topics the rulemaking will address are (1) alternatives to the percent reduction method to determine maximum reasonable rates, (2) the allocation of revenue from cross-over traffic, (3) forecasting future operating expenses of a stand-alone railroad, (4) movement-specific adjustments to the Board