Opinion ID: 445219
Heading Depth: 2
Heading Rank: 2

Heading: The Staggers Act and its Balancing Approach in Ratemaking

Text: 28 The Staggers Act specifically removes ICC and state jurisdiction over railroad rates applicable to competitive rail traffic. The ICC and the states, however, continue to exert jurisdiction over rates where a railroad has market dominance over the transportation to which the rate applies. 49 U.S.C. Sec. 10709(c). Under the Act, a rail carrier does not have market dominance with respect to a particular rate if the rate is less than 175% (165% at the time this case arose) of the railroad's variable cost. Id. Sec. 10709(d)(2). Yet Congress specifically provided that a rail rate greater than 175% of variable costs does not establish a presumption either that the railroad is market dominant, or that the rate is unreasonable. Id. Sec. 10709(d)(4) (emphasis added). Those issues must be determined on a case-by-case basis. 29 In ratemaking as well as generally, the present statutory system of national rail regulation is designed to accomplish a number of objectives: 30 In regulating the railroad industry, it is the policy of the United States Government-- 31