Review of Railway Cost of Capital Methodology
- January 18, 2010
A review of the Canadian Transportation Agency’s (Agency) cost of capital methodology is currently in progress. The review is being conducted in two phases: a study phase and a hearing phase. In the study phase, an independent consultant will examine existing cost of capital methodologies and principles. The consultant will also review the Agency’s current cost of capital methodology and the cost of capital methodologies used by other economic regulatory bodies. When this phase has concluded, there will be a hearing phase during which a panel of Agency Members will consider the consultant’s report and gather evidence from railway companies, shippers and other interested parties to ascertain if there is a potentially superior methodology or methodologies, or improvements that should be made, to the Agency’s current “benchmark” methodology. During the study phase, interested parties will be given the opportunity to provide feedback at specific points in the process as outlined in the Terms of Reference. Submissions should be forwarded to:
A review of the Canadian Transportation Agency’s (Agency) cost of capital methodology is currently in progress. The review is being conducted in two phases: a study phase and a hearing phase. In the study phase, an independent consultant will examine existing cost of capital methodologies and principles. The consultant will also review the Agency’s current cost of capital methodology and the cost of capital methodologies used by other economic regulatory bodies. When this phase has concluded, there will be a hearing phase during which a panel of Agency Members will consider the consultant’s report and gather evidence from railway companies, shippers and other interested parties to ascertain if there is a potentially superior methodology or methodologies, or improvements that should be made, to the Agency’s current “benchmark” methodology. During the study phase, interested parties will be given the opportunity to provide feedback at specific points in the process as outlined in the Terms of Reference. Submissions should be forwarded to:
Canadian Transportation Agency
Ottawa, Ontario
K1A 0N9
January 18, 2010 – Final Terms of Reference Distributed to Stakeholders
- Correspondence from the Agency Secretary – January 18, 2010
- Distribution List
- Final Terms of Reference [PDF]
