46 CFR § 404.101 - Ratemaking step 1: Recognize previous operating expenses.

---
identifier: "/us/cfr/t46/s404.101"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "46 CFR § 404.101 - Ratemaking step 1: Recognize previous operating expenses."
title_number: 46
title_name: "Shipping"
section_number: "404.101"
section_name: "Ratemaking step 1: Recognize previous operating expenses."
chapter_name: "COAST GUARD (GREAT LAKES PILOTAGE), DEPARTMENT OF HOMELAND SECURITY"
part_number: "404"
part_name: "GREAT LAKES PILOTAGE RATEMAKING"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "46 U.S.C. 2103, 2104(a), 9303, 9304; DHS Delegation No. 00170.1, Revision No. 01.4."
regulatory_source: "USCG-2015-0497, 81 FR 11941, Mar. 7, 2016, unless otherwise noted."
cfr_part: "404"
---


# 404.101 Ratemaking step 1: Recognize previous operating expenses.

The Director uses an independent third party to review each pilotage association's expenses, as reported and audited for the last full year for which figures are available, and determines which expense items to recognize for base ratemaking purposes in accordance with § 404.2 of this part.