Section 105IAC5-1-12. Rate flexibility

   (a) A rail carrier may raise any rate pursuant to the limitations described in 49 U.S.C. a. Base rates increased by the quarterly rail cost adjustment factor will not be investigated or suspended. In addition, a railroad may increase any rate by 6% per annum (to a maximum of 18%) over the four year period following enactment of the Staggers Act. Thereafter, railroads not earning adequate revenues, as defined by the interstate commerce commission, may raise rates 4% per year. Neither the 6% or 4% increase shall be suspended. If the increase results in a revenue to variable cost ratio that equals or exceeds 190%, the commission may investigate the rate either on its own motion or on complaint of an interested party.

  (b) In determining whether or not to investigate the rate this commission shall consider:

(1) the amount of traffic which the railroad transports at revenues which do not contribute to going concern value and efforts made to minimize such traffic;

(2) the amount of traffic which contributes only marginally to fixed costs and the extent to which rates on such traffic can be changed to maximize the revenues from such traffic;

(3) the impact of the challenged rate on national energy goals;

(4) state and national transportation policy; and

(5) the revenue adequacy goals incorporated in the interstate commerce act.

(Indiana Department of Transportation; 105 IAC 5-1-12; filed May 18, 1983, 2:18 p.m.: 6 IR 1204; filed Feb 27, 1985, 9:24 a.m.: 8 IR 771; readopted filed Nov 7, 2001, 3:20 p.m.: 25 IR 899; readopted filed Jun 14, 2007, 2:45 p.m.: 20070627-IR-105070237RFA; readopted filed Oct 2, 2013, 11:39 a.m.: 20131030-IR-105130295RFA) NOTE: Transferred from Department of Transportation (100 IAC 6-1-12) to Indiana Department of Transportation (105 IAC 5-1-12) by P.L.112-1989, SECTION 5, effective July 1, 1989.