46 CFR § 404.102 - Ratemaking step 2: Project operating expenses, adjusting for inflation or deflation.

---
identifier: "/us/cfr/t46/s404.102"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "46 CFR § 404.102 - Ratemaking step 2: Project operating expenses, adjusting for inflation or deflation."
title_number: 46
title_name: "Shipping"
section_number: "404.102"
section_name: "Ratemaking step 2: Project operating expenses, adjusting for inflation or deflation."
chapter_name: "COAST GUARD (GREAT LAKES PILOTAGE), DEPARTMENT OF HOMELAND SECURITY"
part_number: "404"
part_name: "GREAT LAKES PILOTAGE RATEMAKING"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
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"
---


# 404.102 Ratemaking step 2: Project operating expenses, adjusting for inflation or deflation.

The Director projects the base year's non-compensation operating expenses for each pilotage association, using recognized operating expense items from § 404.101. Recognized operating expense items subject to inflation or deflation factors are adjusted for those factors based on the subsequent year's U.S. government consumer price index data for the Midwest, projected through the year in which the new base rates take effect, or if that is unavailable, the Federal Open Market Committee median economic projections for Personal Consumption Expenditures inflation.

[USCG-2017-0903, 83 FR 26193, June 5, 2018]