Opinion ID: 370390
Heading Depth: 3
Heading Rank: 2

Heading: Cost Evidence

Text: 62 As to HL&P's coal traffic, the Commission determined the railroads' variable costs to be $9.59 per net ton, and their fully allocated costs to be $12.86 per net ton. The Commission concluded that a rate of $15.60 per net ton, which would recover 163 per cent of variable costs and 121 per cent of fully allocated costs, came within the zone of reasonableness, though it fell on the high end of the range. The Commission rejected, however, a rate of $16.54 as exceeding a maximum reasonable level. HL&P J.A. at 54-59. As to AEPC's traffic, the Commission found variable costs of $5.44 per net ton, and fully allocated costs of $6.94. It found just and reasonable the proposed rate of $8.64 per net ton, which recovered 159 per cent of variable costs and 124 per cent of fully allocated costs. AEPC J.A. at 63-67. 63 Petitioners allege numerous errors in the Commission's assessment of the cost evidence. The evaluation of evidence of carrier costs of providing a service is a function peculiarly for agency expertise. 47 We apply our narrow standard of review and conclude that the Commission's cost determinations are supported by substantial evidence. 48