105 IAC 5-1-10 - Reasonableness of rate; evaluation

Authority: IC 8-1-1-3

Affected: IC 8-3-1-3; IC 8-3-1-8

Sec. 10.

(a) Except for nonferrous recyclables, the commission shall evaluate the reasonableness of a rate only after market dominance has been established. In determining whether a rate is reasonable, the commission shall consider, among other factors, evidence of the following:

(1) the amount of traffic which is transported 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, if any, rates on such traffic can be changed to maximize the revenues from such traffic; and

(3) the carrier's mix of rail traffic to determine whether the shippers of one commodity are paying an unreasonable share of the carrier's overall revenues.

(b) Pursuant to the interstate commerce commission's decision in Ex Parte 394, a rate on nonferrous recyclable material is presumed to be unreasonable when it is set at a revenue to variable cost ratio greater than that allowed by the Staggers Act as amended from time to time.

Notes

105 IAC 5-1-10

Indiana Department of Transportation; 105 IAC 5-1-10; filed May 18, 1983, 2:18 p.m.: 6 IR 1203; 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 Readopted filed 10/4/2019, 9:49 a.m.: 20191030-IR-105190422RFA

Transferred from Department of Transportation ( 100 IAC 6-1-10) to Indiana Department of Transportation (105 IAC 5-1-10) by P.L. 112-1989, SECTION 5, effective July 1, 1989.