West Virginia Code of State Rules › Agency 150 - Public Service Commission › Title 150 - EXEMPT LEGISLATIVE RULE PUBLIC SERVICE COMMISSION › Series 150-19 - Shippers Access To Lines And Facilities Of Rail Carriers › Section 150-19-3 - Determination of an Access Charge

Current through Register Vol. XLI, No. 28, July 12, 2024
3.1. Election of access charge methodology.
In its application an accessing shipper shall elect to have
				  its access charge established under either the "stand alone cost" methodology,
				  or the "carrier access" methodology. The shipper's election contained in its
				  application shall be binding on the shipper for that and all subsequent
				  applications filed by the shipper for use of the same access facilities within
				  the thirty-six (36) months following the date on which the initial election is
				  filed.
3.2. Change of
				access charge methodology.
Notwithstanding section 3.1. of these regulations, a shipper
				  may elect to change the applicable access charge methodology by notifying the
				  accessed carrier and undertaking to compensate the accessed carrier for the
				  reasonable expenses incurred by the accessed carrier in calculating an access
				  charge using the new methodology.
3.3. Stand alone cost methodology.
3.3.1. An access charge to an accessing
				shipper computed using the stand alone cost methodology seeks to give the
				accessed carrier the same contribution to its fixed costs that it would obtain
				if the accessed carrier charged a rate to the accessing shipper for
				transportation over the access facilities at the stand alone cost level
				established in the Interstate Commerce Commission's Coal Rate Guidelines
				Nationwide, Ex Parte 347 (Sub. No.1).
3.3.2. The access charge to an accessing
				shipper for use of the access facilities to move a specified annual tonnage of
				a commodity over the access facilities shall be equal to the stand alone cost
				to the accessing shipper of moving that specified annual tonnage of its own
				traffic over the access facilities, reduced by the accessed carrier's avoidable
				costs of serving that traffic over the access facilities. In its application
				for a shipper access order, the accessing shipper requesting an access charge
				calculated under a stand alone cost methodology shall specify the annual
				tonnage it wishes to move over the access facilities.
3.3.3. In calculating its proposed access
				charge using a stand alone cost methodology, the accessed carrier shall present
				a base case that makes the following simplifying assumptions;
a. all shippers of bulk commodities
				originating on, terminating on, or overhead to the access facilities are part
				of the stand alone group and have the same elasticity of demand for use of the
				access facilities;
b. all non-bulk
				traffic originating on, terminating on, or overhead to the access facilities
				can cover only variable costs;
c.
				the costs of off-line facilities needed to handle bulk commodities of other
				shippers originating on, terminating on, or overhead to the access facilities
				are fully compensated by the rates that are charged (or that could be charged)
				to the shippers of those commodities; and
d. the facilities needed to provide stand
				alone service to the accessing shipper (and to other shippers in the stand
				alone group) are the access facilities currently in place.
3.3.4. In accordance with the ICC's stand
				alone cost methodology:
a. the facilities
				needed to provide stand alone service to the shipper (and other shippers in the
				stand alone cost group) should be valued at their depreciated current cost; and
b. the return on the depreciated
				current cost of the access facilities should be equal to the ICC's most recent
				determination of the nominal current cost of capital to the railroad
				industry.
3.3.5. The
				accessed carrier's access charge proposals shall also identify the
				traffic-sensitive costs that the accessing shipper's use of the access
				facilities will cause the accessed carrier to incur and that are not included
				in the stand alone cost calculation. The access charge proposed shall propose a
				method for measuring such costs and compensating the accessed
				carrier.
3.3.6. In addition to the
				base case, the accessed carrier may show that one or more of the bases case
				assumptions is not appropriate for the specific case in issue, and the effect
				of that variation from the base case on the stand alone cost of the accessing
				shipper providing its own service.
3.3.7. Stand alone cost rates below
				jurisdictional levels.
3.3.7.1. If the stand
				alone cost of serving the accessing shipper or shipper group is less than one
				hundred eighty percent (180%) of the variable cost to the accessed carrier of
				providing the service, the stand alone cost of serving the accessing shipper or
				shipper group shall be conclusively presumed to equal one hundred eighty
				percent (180%) of the variable cost to the accessed carrier of providing the
				service.
3.3.7.2. For purposes of
				this section, the accessed carrier shall compute the variable cost of serving
				the shippers traffic in the same manner required or permitted under the
				Interstate Commerce Act to determine the jurisdictional threshold of the
				Interstate Commerce Commission's rate reasonableness jurisdiction.