# Railroad Cost-of-Capital—2003
**AGENCY:**
Surface Transportation Board, DoT.
**ACTION:**
Notice of decision.
**SUMMARY:**
On June 22, 2004, the Board served a decision to update its computation of the railroad industry's cost-of-capital for 2003. The composite after-tax cost-of-capital rate for 2003 is found to be 9.4%, based on a current cost-of-debt of 5.0%; a cost of common equity capital of 12.7%; and a capital structure mix comprised of 42.8% debt and 57.2% common equity. The cost-of-capital finding made in this proceeding will be used in a variety of Board proceedings.
**DATES:**
*Effective Date:* This action is effective June 28, 2004.
**FOR FURTHER INFORMATION CONTACT:**
Leonard J. Blistein, (202) 565-1529. (Federal Information Relay Service (FIRS) for the hearing impaired: 1 (800) 877-8339).
**SUPPLEMENTARY INFORMATION:**
The cost-of-capital finding in this decision may be used for a variety of regulatory purposes. The Board's decision is posted on the Board's Web site, *www.stb.dot.gov.* In addition, copies of the decision may be purchased from ASAP Document Solutions by calling 301-577-2600 or by e-mailing *[email protected].*
**Environmental and Energy Considerations**
This action will not significantly affect either the quality of the human environment or the conservation of energy resources.
**Regulatory Flexibility Analysis**
Pursuant to 5 U.S.C. 605(b), we conclude that our action in this proceeding will not have a significant economic impact on a substantial number of small entities. The purpose and effect of this action are to update the annual railroad industry cost-of-capital finding by the Board. No new reporting or other regulatory requirements are imposed, directly or indirectly, on small entities.
**Authority:**
49 U.S.C. 10704(a).
By the Board, Chairman Nober, Vice Chairman Mulvey, and Commissioner Buttrey.
Decided: June 22, 2004.
Vernon A. Williams,
Secretary.