BNSF Railway Co. v. STB, et al., No. 12-1042 (D.C. Cir. 2014)
Annotate this CaseIn this case, the Board addressed a rate dispute between a shipper and two railroads. The railroads contended that the Board's decision was too favorable to the shipper and the shipper contended that the Board's decision was too favorable to the railroads. The railroads and the shippers petitioned for review. The court concluded that the Board reasonably interpreted that the prior rates were not reasonable based on a Stand-Alone-Cost test that employs a hypothetical Stand Alone Railroad that is optimally efficient; the Board's calculation of the railroads' variable costs was reasonable and reasonably explained; and Arizona Electric lacked standing where the court could not detect a current injury to Arizona Electric from the Board's decision regarding the switch to proportional rates. Accordingly, the court denied the petition for review.
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