STB Posts Internal Rate Case Assessment

The Surface Transportation Board (STB) has posted a June 2015 report on improving the Board’s internal rate case processing. The agency also expects to release stand-alone cost (SAC) processing guidelines in the near term that implement many of the June 2015 report’s recommendations.

The goal of the June 2015 report and the forthcoming guidelines is to ensure that the Board continues to produce quality rate decisions in a timely fashion.

“I am pleased that we are able to share this report with our stakeholders,” stated STB Chairman Daniel Elliott. “Although our rate decisions have been well-reasoned and fully defensible, I am committed to further improving the Board’s ability to deliver rate case decisions in an efficient manner. The June 2015 report and the forthcoming processing guidelines are one part of a larger effort to meet the challenge of complex cases and provide value to the Board’s stakeholders.”

The evaluation of rate reasonableness for rail shippers in adjudications under the Board’s SAC rate reasonableness methodology is one of the STB’s more complex responsibilities. The STB handles these cases using interdisciplinary teams composed of staff from at least three STB offices (the Offices of Economics, Proceedings, and General Counsel). To improve efficiency, Chairman Elliott convened a study team consisting of members of each of these offices, along with resources provided by an outside contractor.

The June 2015 report analyzes the agency’s internal procedures at the time of the study and provides a number of recommendations on how to improve the quality of the Board’s internal processes. The report provides immediate implementation recommendations, near-term recommendations to be considered over 3-12 months, and longer-term recommendations.

“While the agency has treated this report as confidential to date, I have decided to release it in the interest of transparency as the Board continues its evaluation of other SAC-related issues, including the recently released InterVISTAS report and the upcoming economic roundtable and public hearing," said Chairman Elliott. "I will also post the processing guidelines as soon as they are ready to be issued.”