proposal for completiondiesel fuel rate (¢/gal) . . '. i 1.12.4 16. lube oil expense (% of...

Collectionr: L.lor:10'

PROPOSAL FOR COMPLETION

OF THE

ELECTRIFIED RAILWAY OPERATION

OF THE

CHICAGO, MILWAUKEE, ST. PAUL

AND

PACIFIC RAILROAD COMPANY

LOCOMOTIVE PRODUCTS DEPARTMENT

TR.i\NSPORTJl.TION SYSTEr"S BUSINESS DIV ISION

GENERAL ELECTRIC COMPANY

ERIE, PENNSYLVANIA

March 20. 1972

GJr.c.:. ;.'::'t::::~:'1:::=.' ~.;~: l\ .iI.:~., • £. :: ';;;;:;~~- ,~'"- --~.:. : ---,,_. - -.~ -_... -::-.....-,-

I NDE X

TAB - 1 TABLE I - ANNUAL CASH SAVINGS THROUGHELECTRIFICATION

A. AFTER TAXES

B. BEFORE TAXES

TAB - 2 ECONOMETRIC COMPUTER PROGRAM - INPUT DATASUMMARY

TAB - 3 COMPUTER PROGRAM - INPUT DATA

TAB - 4 INCOME STATEMENTS

A. AFTER TAXES

B. BEFORE TAXES

\

Ihe Milwaukee Road CollectionMilwaukee Public Library

TABLE I (A)

A~NUAL CASH SAVINGS

THROUGH ELECTRIFICATION

TAXES

Year·

1974197519761977197819791980198119821983~1984 .1985198619871988198919901991199219931994199519961997199819992000200120022003

2.7% Growth Rate

$ 0.05 Hillian0.090.190.290.330.360.470.550.69 .o(/plY

g:;~~/_Lf-

0.510.69 "f-1670.881.122.703.003.383.694.145.616.256.867.548.339.069.99

11.0012.0913.17

5% Grmvth Ra te

$ 0.05 Hillion0.120.220.390.4-90.520.690.87L091.340.99

_~_.L26

1. 60 6.0.3

1.992.364.174.765. l }56.196.988.98

10. ILl-11. Ll·212.8814.4716.3418.3120. l }522.9925.56

TOTAL $ 114.17 Million $ 203.07 l1illion

TABLE I (B)

A~~UAL CASH SAVINGS

TIiROUGH ELECTRIFICATION

Year

197419751976197719781979198019811982198319841985198619871988198919901991199219931994199519961997199819992000

.200120022003

TOTAL

2.7% GrQvlth Rate

$ 0.03 Million0.130.320.530.620.680.891.071.321.6000641.031.38 8.8C:1. 762.266.216.737.467.988 0 82

11.5012.5813.5914.6715.9617.1518.7020.2922.0023.69

~: 221.59 Hillion

5% Grovlth Ra te

$ 0.03 Hillion0.190.410.750.95LOS1.381. 762.172.692.022.573.25 1.5,q74.014.769.15

10.2911.6813.1614.6918.5320.6723.0025.6728.6031.9935.5039.3643.9248.l.6

$ 402.66 Million

2

~=-=-

~~~ 'I. A'

l Ro!'\,/'i

;'

4?!

<L,t:S4{)

4- t, /2.-1 1 471

~ot- "'-;;;<:7:.. ~:;t_·e:;- ~~

7' 204

100

\3 ::250 234

G.,:1':1 "r'("i lj,;;. y" t:!: 4/i-~f G.~·X .:,,": t )-K; /i,' T~- /!;J·Y <·5 '7r~ -.----,::; ::"'-~ ..~!h ~~ !, 1;<')r<;. i>- i::." -;1, ~-,L} f'· ,i-' .~,{;.--;

RJt<i. -",.~ /~,-_\~,-... :,; A-~16::;'- NoJ.?u:,~· 'C.~~G_:t i':;·~-)7~··/'';,;-7~-';.~(~v~:,--;"~~,

-:? ,5,0.0 £.-1:) .,.~

----_:~'""""'-.:::._--~.~,-",._~".~ .._~".__.~.~""'.~¢--=".- •.--~~,

-4 C-.:) t~;.~ 4--- ---_ .•-~-_..:.-.,---_."~._ .•~--

C£ ~00

j."

The Milwau\<.ee Road Collection'. Milwaukee Public Library

ECONOMETRIC COMPUTER PROGRAM-?

INPUT DATA SUMMARY

31.

29.30.

26.27.28.

Following is a summary of the input data used in the General Electric econometriccomputer program. These inputs, which are explained in more detail in Tab 3,resulted in the annual ca~h savings shown in Table I. All inputs are projectedto January 1974.

1. Initial Year of Total E1~ctric Operation 1974~2. Traffic Volume - 1974 (MGTM). 6,875,000"~ _3. Projected Annual Traffic Growth Rate 2.7%/5~

n.Electric Energy Consumption (kwh/year) 259,625,000 ~Ak/-

. 5. E1 ectri c Energy Rate (mi 11 s/kwh) }~}r6. Electric Energy Inflation Rate ~J~

. 7. Number - Electric Locomotives (Including Little Joes) -it"",~. 8. Price - Electric Locomotives 4C.q 000 -In' Lease chargJ·/I: _

• '0 -J 9. Lease Charges: Catenary & Substati ons - 1974 thru 2003 $ 1 550 000/yr.2!;3;f5/o~~ ! Electric Locomotives 1974 thru 1993 r$ 1 800 OoO/yr. UP

Ii. 10.. Maintenance - Electric Locomotives (¢!MGTM) I '" r·--~1.2q{·11 .. Catenary and Substation Maintenance and Operation ~- 1 39Q300/yr. Of'";~U-I 12. Signal System and Track Bonding Changes ,$ 1 OOQ 000······__···-

113. Transmission Line Value I~ 54q 006)14. Diesel Fuel Consumption (gal/year) --·--~1~14,869~432.15. Diesel Fuel Rate (¢/gal) . . '. I 1.12.416. Lube Oil Expense (% of Diesel Fuel Expense) ~ I ! 10%17. Diesel Fuel Inflation Rate II I 3.~_~18. Number - Diesel-Electric Locomotives . 9G-,~

19. Price - Diesel-Electric Locomotives 'I $ 298 00020. Lease Charge: Diesel~E1ectric Locos - 1974 thru 1988 L$ 2 80~ ODD/yr.21. Maintenance - Diesel-Electric Locomotives (¢!MGTM) L..34.822. Diesel Fuel Supply Inventory Expense "1'--18254fyr.-23. Lube Oil Ana1ysi s - Annual Expense . , ~co.24. Diesel-Electric Locomotive Spare Parts Inventory-(£u;:crT-i':'c-z""!x'7~",,s)$~.

25. ICC Annual Inspection Charges - Electric $ 590/.10c o .- Diesel-Electric $ ~ZO!]oco.

Projected Annual Interest Rate 9%'Projected Annual Inflation Rate .5%Taxes: Federal Income 48%

Property 1%Number of Years Between Locomotive Investments 1 yearPhysical Life: Catenary and Substations 50 years

Signals 50 yearsElectric Locomotives 30 yearsDiesel-Electric Locomotives 15 years

Depreciated Life: Signals 35 yearsElectric Locomotives 30 yearsDiesel-Electric Locomotives 15 years

Note:

32.

33.34.35.

36.37.

Loan/Lease Periods: Catenary and SubstationsSignalsElectric LocomotivesDiesel-Eiectric Locomotives

Depreciation Method Straight Line ~ 10% SalvageLoan Payments Level PaymentsCash Savings Both Berore Taxes (Table I (B»and After

Taxes (Table I (A»Severence Cost Catenary and Substation MaintenanceSignal Pole Replacement Cost - Years 1974 through 1988

Quantity of electric units, including the 12 existing Little Joelocomotives, will equal or exceed the total capability of the 90diesel-electric locomotives in both horsepower and tractive effort.

30 years20 years20 years15 years

JIl\.:' 'v;iiv':iU!\C,C' Fbc'Ci cr. iiE'.etlan, !V~;ivv:(d!<eE: PuJJI,c Liprary

COMPUTER PROGRAM - INPUT DATA

1. Initial Year of Total Electric Operation ~ 1974

The computer program assumes that the total system will begin operation onJanuary 1, 1974. This mayor may not be factual, since the date on whichthe program is approved and completion activities begin will obviously havea definite bearing on the system start-up date. For purposes of this studyhowever, 1974 is considered the initial year of electric operation.

2. Traffic Volume - 1974 - 6,875,000 MGTM

This figure is based on actual 1971 traffic volume furnished by the railroad as follows:

Coast DivisionOthello - AveryMountain Division

1,269,7481',547,2503,530,9806,347,978

Using a 2.7% per year traffic growth rate (one-half the Milwaukee's 19611970 growth rate), 1974 traffic is projected to 6,875,000 MGTM.

Note: This traffic volume is actually a trailing ton-mile figure, anddoes not include locomotive weight.

3. Projected Annual Traffic Growth Rate

The 1971 traffic volume of 6,347,978 MGTM is up 4.9% from the 1970 level,considerably above the 111/2 historical growth rate ll of 2.7% and actuallycloser to the 1961-1970 actual growth rate of approximately 5.4%. TheASTRO Report projects a national rail growth rate in total net ton miles of3.5% per year through 1980. Two growth rates were therefore used in thisstudy, one at the 1/2-historical growth rate (2.7%) and the other at 5%.which shows the effect of continued growth at the 1971 pace.

4. Electric Energy Consumption - 259,625,OOO-KWH/Year

Based on the traffic volume in item #2, and on kwh/MGTM data supplied theRailroad, total 1974 electric energy consumption is computed as follows:

Area KWH/MGTM MGTM/Year KWH/Year

Coast Division 41 1,375,000 56,375,000Othello - Avery 30 1,675,000 50,250,000Mountain Division 40 3,825,000 153,000,000

Total 6,875,000 259,625,000

o

4. Electric Energy Consumption (continued)

Note: These kwh values are as measured at the power company meteringpoint, and include locomotive idling and working locally.Although the MGTM data is actually a trailing ton-mile figure,the kwh/MGTM data given above includes the power required tomove the locomotive.

5. Electric Energy Rate (Mills/Kwh) - 7.75

The latest utility proposal for electric energy charges is as follows:


7.5 -8.07.a".. ~ -- .~~~> ,'-'

8.0

These rates are based upon receipt of Milwaukee agreement to sell theapproximately 500-mile, l15-kv transmission line to the utilities for$3,540,000. Based on the above proposed rates, and based on the kwh usageprojected for each division, a 7.75 mill average or composite rate wasdetermined as follows:

Area


KWH/Year

56,375,00050,250,000

153,000,000

259,625,000

$/KWH

$ 0.007750.0070.008

$/Year

$ 436,906351,750

1,224,000

$ 2,012,656

$2,012,656 = $ 0.00775 = 7.75 Mills259,625,000 kwh

6. Electric ,Energy Inflation Rate - 1%

Historically, electrical energy rates have not followed general inflationarytrends but have actually decreased over the years. There is reason to

-believe that continued decreases will not be likely in the future however.For this reason this analysis has been based on a 1% inflation of electricenergy rate, rather than a level or decreasing rate as has taken place overthe years.

7. Number - Electric Locomotives

The electric locomotive annual lease charge (reference item #9) is based ona quantity of 44 electric units which, when combined with the Little Joesnow in service, will equal or exceed 90 diesel-electric locomotives in bothhorsepower and tractive effort.

7. Number - Electric Locomotives (continued)

Locomotive requirements for handling a given annual tonnage must be based ona ~pecified peak month in the annual traffic pattern and not on an averageunlform flow of traffic. In the electrification territory, historically andrecently, the peak month traffic exceeds the average uniform traffic flow byonly 10%. The dollar revenue impact of peak traffic is emphasized by thethree peak months usually occurring consecutively.

A recent 1972 day, tabulated below, was in a peak time and, according to theRailroad, apparently very few units were in the terminals:

Quantity

94976~

~1

Total

Type

Little JoesGP40's5045'sElectric Helpers

Weight on Drivers!~

3,987,900[13,117,300:2,706,100~·1,350,000)

$-

21,161,400#

To supply the required 21,161,400# weight on drivers a total of 58 straightelectrics would be required. Actual weight on drivers from 58 straightelectrics would be 58 X 390,000# = 22,620,000#. However, since electricunits have a 95% availability rate, this quantity would provide the currentrequirements:

.95 (22,690,000#) = 21,489,000# (available)

Note: Since 12 Little Joes are expected to remain in service through1983, they will provide (12) (.95) (443,100) = 5,051,340#weight on drivers. Thus only 21,161,400# -5,051,340# = 16,110,060#weight on drivers is required initially. This can be provided bya quantity of only 44 electric units, thus postponing the purchaseof 14 straight electrics until after the Little Joes have beenretired.

5,051,340# + ~95) (44) (390,000)* 5,051,340# + 16,302,000# = 21,353,340# (available)

The basis and source of an "'~vailability factor~ should be defined for allconcerned. The following statement is made in a report prepared for theDOT but not yet approved for release.

"The availability factor provides a means of evaluating the differencesin locomotive fleets that arise from differences in the amount of timethat locomotives must spend in activities other than hauling freight.The electric locomotive manufacturers have claimed that electric locomotives will spend only 5% of their lifetime in maintenance as comparedwith 11% of diesels and that they will lose no time in routine turnaround servicing (fueling, lubrication, watering, engine inspection) ascompared with 5% for diesels. The electric availability under theseassumptions would be 95% as compared with 84% for diesel."

8. Price - Electric Locomotives

Included in the electric locomotive lease charge.

9. Catenary, Substation and Locomotive Lease Charges

Catenary and Substations - $1,550,000/Year

The catenary and substation lease charge estimate includes the closing ofthe gap between Othello and Avery and updating existing substations in thetwo currently electrified zones. The scoRe of this effort is considered ,{ /'to be es~gJ].:tigJJ.y_~_~_defJned in the Septembe'r'1971 "Proposal for Milwaukee l ,/'Road El ectri fi cati on" furn; sliecrl)y-tne--~onfa~na--Powe-r-C6mpan)1,-the Puget ,:1{ ,~':'Sound Power &Light Company and the Washington Water Power Company. Thi~~i~'flinc1udes replacement of feeders, movi ng of exi sti ng motor-generator sets, Y',,"and replacement of certain motor-generator sets with silicone rectifiers,as well as the installation of new catenary and substations required in thegap. jJ-9.Q£.s_JlQJ:4,.iXlClud_~7the subseg,:!~nt~_i.YJ?jJ2-=ti Qt:L, mod ifi cati ons requi redaccording to the utility proposal when the traffic increases by 1,500,000/MGTM and again when traffic further increases by an additional 1,500,000/MGTM.Communication changes if required are also not included.

As mentioned in item #5, the utility energy rates are, contingent upon sale ofthe Milwaukee 115-kv transmission line to the utilities for $3,540,000. Itis further understood that these proceeds must be used in construction of the

~'!,'j'J new catenary, substations, or substation modifications. The above lease

\J~ charge takes thi~ into account, by reducing the principal lease amount by thef $3,540,000 sale price of the transmission line.

Exact terms of the lease are yet to be negotiated. The lease cost for thisx::,//,an~lysis is based on a true lease, pay~ble over a t~irty year period, with",W/ falr market value at the end of the thlrty year penod. At the end of the

~A/ lease, Milwaukee would have the option of purchasing the system and locomov~~~/ tives at fair market value. Insurance and taxes are not included. The lease/~ rate is based on the Milwaukee's long-term borrowing rate which, for this

analysis, was assumed to be 9%. If the Milwaukee should qualify for a lowerrate, the lease rate would also be lower. Thus financing of the electriclocomotives versus diesel electrics, as compared in our computer program,'will not show appreciably different cost differentials if the borrowing rateshould vary somewhat from the 9% figure.-#/J,.i:UH &f/7"p"'i:! /c"{,'?,,/d.A-:

~ v

Electric Locomotives - $ 1,800,000/Year

Per item #7, a total of 44 electric units is required in addition to theexisting Little Joe fleet to equal or exceed 90 diesel-electric locomotivesin both horsepower and tractive effort. The above lease charge estimate isbased on this quantity of new electric units, and would be similar to thelease for catenary and substations except that it would be of twenty-yearduration.

10. Maintenance - Electric Locomotives 11.2¢!MGTM

Per a December 13, 1971 Pan-Technology report "Cost Effectiveness Review ofRailroad Electrification", maintenance of an electric locomotive has beenfound by European and South-African railroads to be one-half to one-thirdthat required for a diesel-electric locomotive. The Pan-Tech report adopteda 1 to 2.5 or 40% ratio for this comparison on a per locomotive unit basis.For conservatism, this study used the maximum one-half or 50% comparison.Per items #7 and #18, a quantity of 90 diesel-electric locomotives isrequired versus only 58 electric units. Using the 50% ratio previouslymentioned, the maintenance cost ratio on a ¢/MGTM basis is thus (100%)(90 diesel-electric locomotives) versus (50%) (58 electric units) or 90versus 29 (.app.r.,Q.~Jl]lclte1y'.3 __ tq 1). Since diesel-electric maintenance cost is34.8¢/MGTM per item #21, maintenance for an electric locomotive is then(34.8) (29/90) = 11.2¢/MGTM.

11. Catenary and Substation Maintenance and Operation - $1,390,300/Year

Latest Railroad estimate of projected annual catenary and substation maintenance expense, including labor and materials for pole replacement is$1,390,300... .. ,,f if J":f,,~ ,-.4;'

12. Signal System and Track Bonding Changes - $1,000,000 .

The Railroad has previously estimated the cost of signal and track bondingchanges as follows:

SignalsTrack Bonding

Total

$ 750,000250,000

$1,000,000\

This is not included in the annual lease charge.

13. Transmission Line Value - $3,540,000

Latest utility energy rate proposal is understood to be contingent upon saleof the Milwaukee1s l15-kv transmission line to the utilities at $3,540,000.·Although this negotiation is between the Railroad and the utilities, it isassumed for purposes of this study that the transmission line will be sold atthis figure and that the proceeds will be used to defray the cost of the newcatenary, substations and substation improvements.

14. Diesel Fuel Consumption - 14,869,432 Gallons/Year--...........

After conversion of the system the average transmission efficiency from kwh ')metering point to the traction motors will be approximately 63%, based on 70~efficiency from the metering point to the pantograph and 90% efficiency fromthe pantograph to the traction motors. This means that 63% of 259,625,000kwhs, or 163,563,750 kwhs are seen at the rail. Using an agreed upon conversion factor of ll-kwhs per gallon of diesel fuel, the equivalent amount ofdiesel fuel is computed as 163,563,750/11 = 14,869,432 gallons/year.

15. Diesel Fuel Rate - 12.4¢jGallon

Diesel fuel rate is best determined by examination of fuel rates previouslyexperienced by the Milwaukee as follows:

1965196619671968196919701971

June 1971July 1971Aug. 1971Sept 1971Oct. 1971Nov. 1971

9.42¢1gallon9.579.629.95 .

10.5010.8011.0710.9411.0711 .2711. 1211.4211 .56

Based on a 1971 year end fuel rate of 11.56¢/gallon, 1974 fuel rate is estimated to be 12.4i/gallon, using a 3.5% annual escalation factor to accountfor diesel fuel cost inflation.lJJt·~7,~~;:GBY .-

Note: The above fuel rates include tax, purchase expenses and storageexpenses but do not include expenses required for transportationtp the point of usage.

16. Lube Oil Expense - 10% (of diesel fuel expense)

For 1970 freight service, the Milwaukee used $936,000 in lubricating oil and$7,540,000 in diesel fuel. Percentage of lube oil cost to diesel fuel costis ~pproximately 12.4%. Use of 10% for this parameter is thus conservativeand easily justified. .

. 17. Diesel Fuel Inflation Rate - 3.5%/Year

This factor, a recognized unknown, is difficult to establish since even historical data, which may be too low, has had no consistent, long-term trend.looking at the most recent 'available 4-year period (from 1967-1971), pergallon fuel costs have risen from 9.62 to 11.07, which represents an annualpercentage increase of 3.4%. The latest available data for late 1971 indicates that fuel costs are now rising at an annual rate of over 14%. Eventhough this latest rise in over a very short time period, the 3.5% ralte beingused in this study is definitely a conservative one by comparison, and consistent with the past four years' experience. '

18. Number of Diesel-Electric Locomotives

As previously mentioned in item #7, a total of 21,161,400# weight on drivers·is required to equal the tabulated mixture of electric and diesel-electriclocomotives in service on the day selected for comparison. If this weighton drivers is to be supplied by diesel-electric locomotives only, and assumingthe same relative ratio of GP40-s to SD45 1 s (7:1), a total of 79 GP40-typelocomotives and 11 SD45-type locomotives would be required to give an equalamount of weight on drivers:

7911

90

GP40,' S

SD45 1 s21,148,3004,252,600 ~ I

25,'400,900

Since diesel-electric locomotives have an 84% availability (again referenceitem #7) the 25,400,900# weight on drivers from these 90 units will yield(.84) (25,400,900#) = 21,336,756# (available).

19. Price - Diesel-Electric Locomotives - $298,000

Diesel-electric locomotive prices are based on estimates of 1972 GP40 andSD45 prices with standard Milwaukee modifications. Prices have been escalatedat 5% per year to determine an estimated 1973 price for delivery compatiblewith initial operation in January 1974.

SD45GP40

1972

345,000275,000

1973

362,250288,750

Note: Assuming a 79 vs 11 mixture per item #18 above, an average diesel- .---- electric locomotive price is approximately $298,000 per unit.

20. Diesel-Electric Locomotive Lease Charge - $2,800,000/Year

Same lease terms as for electric locomotives except lease period reduced to15 years. These terms may not be available on a diesel-electric locomotive·lease only. Terms were established for a total package consisting of catenary,substations, substation modifications and electric locomotives.

21. Maintenance - Diesel-Electric Locomotives 34.8¢!MGTM fl.'

The Railroad has projected 1974 diesel-electric maintenance costs at 34.8¢/MGTM. This is based on the fact that, although 1970 diesel-electric maintenance cost was only 24.85¢/MGTM, the known electrical workers pay increaseamounts to about 30% from August 1970 through April 1973. (The %increasedepends upon comprehended hours.) The increase from April 1973 through to1974 is unknown, but would not likely exceed 10%. Applying a 40% increaseto the 1970 figure would give 34.8¢/MGTM in 1974.

"'"7"1." '~A!;!JJ' f._ A'; ~711 <37 03' 2. ~3 fJ -3.3 7~' -" IT''1I,v !,r/" - ///1 {n7A

,51?'" 12... q:?,f' 2i3, -~t)~(f.~.lF"' ,;;~"S:·C~G.-::e.,~!-':r

22. Diesel Fuel Supply Inventory Expense - $18,254/Year

The Railroad has advised that fuel and lube oil inventory on hand at any givenpoint in time is approximately equal to 10% of the annual amount of fuel andlube oil consumed. Based on a 1974 fuel cost of 12.4¢/gallon and a usageof 14,869,432 gallons (reference items #15 and #14) and a lube oil cost percentage of 10% (reference item #16), the value of this inventory is computedas foll ows:

1974 Fuel Cost = (.124) (14,869,432) = $ 1,843,8101974 Lube Oil Cost = 10% = 184,381

Total 1974 Cost $ 2,028,191

10% Inventory On Hand $ 202,819

Based on a 9% interest rate, this inventory will cost(.09) ($202,819) = $ 18,254 to maintain in 1974.

23. Lube Oil Analysis - Annual Expanse - $395/Locomotive

Lube oil analysis expense information was previously supplied by the Railroad.

24. Diesel-Electric Locomotive Spare Parts Inventory - $1 ,ODD/Locomotive

Spare parts inventory information was previously supplied by the Railroad.

ICC Annual Inspection Charges25. - Electric - $ 590/LocomotiveDiesel-Electric - $ 820/Locomotive

ICC inspection charges are per information previously supplied by the Railroad.

26. Projected Annual Interest Rate - 9%

As previously mentioned in item 9, the assumed rate of interest will, ofcourse, vary from year to year and quite possibly be more or less than 9% atthe outset. Since the lease rate for catenary, substations and electriclocomotives is also based on this long-term borrowing rate, fluctuations around

·this 9% will effect all lease costs and loan financing costs in similar manner,with a very minimal net effect on the annual cash savings shown in Table I.

27. Projected Annual Inflation Rate - 5%

Estimated to average 5% per year, governmental controls notwithstanding.Reference is made to the 42% increase over the next tnree years in the railroadindustry1s new labor contract. This is a 12.4% annual increase, whtcn. is: amajor contributor to any overall inflation rate projection.

28. Taxes

Property tax rate of 1% estimated by the Railroad.21'~~;:)~a:C(.

29. ./

!iYmbe~o~Ye~~s B~tween Locomotive Investments - 1 Year

Typical railroad purchasing schedule.

30.-32. Time Parameters

All listed time parameters are based on previous input from the Railroad.

33. ~Dreciation Method

Based on Railroad financial policy - assumLd to be straight line - 10%salvage in this analysis.

Level payments ror both principal and interest tlSec in this analysis.

35. Cash Sayings

Roth "Before 'I'8,X" and "After Tax" cash savings shm'7l1 in Table I, perrequest of the Railroad.

According to previous input from the R-:;,iI:coad, fln eX:)E:nse of one Halh,olldollars to retire electrical operBtion personnel is to be charged todiesel operation over the first five years of the study.

According to previou8 input from the railroad, if abandonment ofelectrification were contemp12ted, $140,000 a year (inflated) for 15 yearsfor signal pole replacement \?ould be required and SllOUJd be charged agaillstdiesel operation.

L '

;Ihe h; liN':) J!!\:':I"' !(C,:lr:] t:r")cctiar'" JYlilV,,":~ii.lk~:C' .~.::.;.l.)l:(~ ; .;[~},r·n(v

INCOME STATEMENT

YEAR 197/;,

.(Dollars in Thousands)

El ectr'i c

Variable Cost"

Energy - K\,lHEnergy - Fuel and Lube OilCatenary MaintenanceLocomotive MaintenanceICC Inspection

Total Variable Costs

Fixed Cost

Oi es e1----,~--

':. ..-.

Catenal'y and Substation LeaseLocomotive LCi1seLocomotive DepreciationLocomotive InterestSignal DepreciationSi gna1 InterestProperty Tax

-"

Total Fixed Costs

Total -- Variable and Fixed Costs

Federal Tax Shield

Net Cost After Tax

Difference

1 55D1 800

309010

3 {,SO

7 3,+0

3 573

3 817

5

2 800

,2 800

7 350

3 528

3 822

GrcMth Ha to 2.7 %

t '.;'

\ 'i

0:. . j

INCOME STATEMENT

YEAR 1975

(Oollars in Thousands)

Electt'ic

Variable Cost

Energy - KI'!HEnergy - Fuel and Lube OilCatenary MaintenanceLocornotive (·13 i ntenanceICC Inspection


Fixed Cost

Diesel

~- ."

Catenary and Substation LeaseLocomotive LeaS2Locomotive DepreciationLocomotive InterestSignal DepreciationSignal InterestProperty Tax

'.Total Fixed Costs


Federal Tax Shield

Net Cost After Tax

DiffeYence

1 5501 800 2 800

30 . LfO

90 60309020 10

3 610 .2 910

-; 680 7 800J

? 686 3 7/l tf-,:J

:3 99L} 4 056

62

I NeOHE ST/\HJi1ENT

YE/\R 1976

,(Dollars in Thousands)..

Variable Cost

Energy - K~IH

Energy - Fuel and Lube OilCatenary f·ia -; ntenanceLocomotive MaintenanceICC Inspection


Fixed ·Cost

2 ~60

2 3101 180

900 2 8301.0 90

4 ;LBO 5 230

; .~ .:

Catenary and Substation LeaseLocomotive LeaseLocomotive DepreciationLocomotive InterestSignal DepreciationSigned Intcl'cstProperty Tax

Total Fixed Costs


federal Tax Shield

Net Cost After Tax.

Difference

1 5501 800

50130

309020

3 670

7 950

3 8J.6

2 800100ll~O

10

3 050

8 280

3 974

l. 306

·172

'-.1

INCOME STATEMENT

YEAR 1977


Electdc

Variable Cost

Ener"gy - J(HHEnergy - Fuel and Lube OilCatenary J'ia i ntenanceLocomotive MaintenanceICC Inspection


Fixed Cost

Diesel

... :;.

"...~~

'. :

Catenary and Substation LeaseLocomotive Leaselocomotive DeoreciationLocomotive In~erestSignal DepreciationSignal InterestProperty Tax

Total Fixed Costs


Federal Tax Shield

Net Cost After Tax

Differonce

1 5501 800

80230

309030

.3 810

8 320

4 326

229

2 800lIfO200

20

3 160

8 760

L: 205

4 555

? ..; t;.,t~-," c I h

YEAR 1978

(Dollars in Thousands) .

[1 ceLTi c Diesel----------..,

Variable Cost

Energy - K~m 2 330

Energy - Fuel and Lube Oil 2 61.0

Catenary r,ja i ntenanC2 1 320

Locomotive i-'!aintenance 1 OLfO 3 300

ICC Inspection 50 100

Total Val'l au1e Costs It 740 6 010

Fixed Cost

Catenal~Y and Substation Lc:ase 1 550

Loconlotive Lease 1 sao 2 800

LOCOi:tot i ve Depreciation 110 200

Loconiot"i vp I nter'est 330 290.

Signal Depl'E:C i at ion 30

Signal Interest 80

Property Tax LtO 30

Total F-ixed Costs 3 9/}O .3 320,

Total -- Variable and Fixed Costs(, 620 9 3300

Federa1 Tdx Shield !} 166 4 478,: .',

Net Cost After Tax 4 5J.t~ 4 852

Di ff(~rence -.33,3

Cr'o~>/th 110tc

INCQi·1E ST(Hn~Un.---- -

YEAR 1983

• (Dollars -in Thousands)

Variable Cost

Energy - KHHEnergy - fuel and lube OilCatenary MaintenanceLocomotive MaintenanceICC Inspection


Fixed Cost

_~D~ie,sel

Catenary and Substation leaseLocomotive LeaseLocomot ive Depr'cc i at i onLocomotive InterestSignal DepreciationS"ignal InterestProperty Tax

Total Fixed Costs\.


Federal Tax Shield

Net Cost AftQf Tax

Difference

1 5501 800 2 800

290 560800 710

3070

90 70

l'r 630 t~ 140

1.0 9(~O 12 640

5 261 6 067

c.'69~ 6 573•.1

, 87L].

Grovrth [Vi te

(Dollars in Thousands)

El ectr-i c

Variable Cost

Energy - Kl'iHEhergy - Fuel and Lube OilCatenai'y' it:: i ntcnanceLocomotive MaintenanceICC Inspectiun


Fixed Cost

Dirscl

Cat~nCJry and SUDstat"iun LEaseLocornot·ive LeaseLocomotive DepreciationLocomotive InterestSigndl Depr~ciation

51 ~jna 1 Intei"estProperty Tax

Total Fixed Costs


Federal Tax Shield

Net Cost After Tax

Di fference

1 5501 800

8902 330

3040

250

6 890

15 030

7 21t~

7 816

1180

2 8001 no1 2/+0

120

5 270

17 300

8 30~

8996

INCOME STATEMENT

YEAR 1993


Electric

Variable Cost

Diesel

Energy - KWHEnergy - Fuel and Lube OilCatenary MaintenanceLocomotive MaintenanceICC Inspection


Fixed Cost

4 030

3 5103 230

140

10 910

6 530

10 210310

17 050

Catenary and Substation Leaselocomotive LeaseLocomotive Depreciationlocomotive InterestSignal DepreciationSignal InterestProperty Tax

Total Fixed Costs


Federal Tax Shield

1 5501 8001 280 5 4102 950 6 380

3010

320 620

7 940 12 410

18 850 29 460

9 048 14 141

Net Cost After Tax

Difference

9 802

5 517

15 319

, Growth Rate 2.7%

INCOME STATEMENT

YEAR 1998


Electric

Variable Cost

Diesel

Energy - KI'JHEnergy - Fuel and Lube OilCatenary MaintenanceLocomotive MaintenanceICC Inspection


Fixed Cost

Catenary and Substation LeaseLocomotive LeaseLocomotive DepreciationLocomotive InterestSignal DepreciationSignal InterestProperty Tax

Total Fixed Costs


Federal Tax Shield

Net Cost After Tax

Difference

4 4804 710

210

14 240

1 550

1 8603 750

30

430

7 620

21 860

10 493

11 367

8 632

8 840

14 890450

24 180

6 9506 720

610

14 280

38 460

18 461

19 999

GrO\;'th Rate 2.7%

INCOME STATEMENT

YEAR 2003


Electric

Variable Cost

0; esel

Energy - Kl>JHEnergy - Fuel and Lube OilCatenary MaintenanceLocomotive MaintenanceICC Inspection


Fixed Cost

Catenary and Substation LeaseLocomotive LeaseLocomotive DepreciationLocomotive InterestSignal DepreciationSignal InterestProperty Tax

Total Fixed Costs


Federal Tax Shield

Net Cost After Tax

Difference

5 810

5 7206 860

310

18 700

1 550

2 7004 900

30

600

9 780

28 480

13 670

14 810

11 720

12 020

21 710660

34 390

9 1606 820

650

16 630

51 020

24 490

26 530

Growth Ra te 2.7%

INcor·iE STfiTEi·iENT---------YE!IF{ 197t,L


Electric

Energy - K\J!HEnergy - Fuel and Lube OilCatenary Maintehan~e

Locomotive MaintenanceICC Inspcct-ion


Fixed Cost

Diesel

Catenary and Substation LeaseLocomotive LeaseLocomotive DepreciationLocomotive InterestSignal DepreciationSignal Jntet~est

Property Tax"

Total Fixed Costs


Federal Tax Shield-- .

Net Cost After Tax

Vi ffer'ence

1 5501 800 2 800

3Cl9010

3 430 2 800

7 340 7 350

3 573 3 528

3 817 3 822

5

Gr-O\'ith Rate

YEf\R 1976


El"bctric

Variable Cost

Diesel

Energy - KImEnergy - Fuel and Lube OilCatenary HaintenanceLocomotive MaintenanceICC Inspection


Fixed Cost

2 260

1 180940

llO

2 420

2 96090

5 470

Catenary and SJbstation LeaseLocomotive LeaseLocomotive DepreciationLocomotive lnterestSignal Depreciation5i gna 1 In tel'es t

. Property Tax\

Total fixed Costs


Federal Tax Shield

Net Cost After Tax

Difference

1 5501 800 2 800

90 170270 260309040 30

3 870 3 260

8 'Ion 8 730/._~ ... J

3 979 '+ 190

L} 311 4 540

2""0.L ./

r -

i

INCOME STATEMENT

YEAR 1977


Electric

Var-iable Cost

Energy - K\'!HEnergy - Fuel and Lube OilCatenary MaintenanceLocomotive MaintenanceICC Inspection

. Total Variable Costs

Fixed Cost

Di esel

Catenary and Substation LeaseLocomotive LeaseLocomotive DepreciationLocomotive InterestSignal Depreciation5i gna 1 Inter'es tProperty Tax

Total Fixed Costs\.


Federal Tax Shield

Net Cost After Tax

Diffef'ence

1 5501 800 2 800

l l fO 280.(LI0 400

309050 l~O

I: 070 3 520

<, 800 9 510<;)

I. ?2 tv- ,{- 565

4 576 If 945

369.

5 ('!- }.

INCOME STATEMENT

YE/\R 1978----


E10ctric

Variable Cost

Energy - Kl1HEnergy - Fuel and Lube OilCatenary MaintenanceLocomotive MaintenanceICC Inspection


Fixed Cost

Diesel

Catenary and Substation LeaseLocomotive LeaseLOCOlilotive Depreciat'ionLocomotive InterestSignal DepreciationSignal InterestPrope'r'ty Tax

Totat Fixed Costs


Federal Tax Shield

Net Cost After Tax

Di ffer.ence

1. 5!)O1 800 2 800

190 390560 550

308070 60

!.J 280 J 800

~ :1'-\0 10 360

I: M53 II 973

1\ 857 5 387

50D

I NCm1E ST/\TF:}jENT

YEAR 1983

~(Dollars in Thousands)

Electric Diesel

Val'iable Cost

Enet'gy - nIHEnergy - Fuel and Lube OilCatenary MaintenunceLocomotive HaintenanceICC Inspect'j on

Total'Variable Costs

Fixed Cost

Catenary and S:;bsta ti on LeclseLocomotive LeaseLocomotive DopreciationLocomotive InterestSignal DepreciationSi gn3.·1 lntorestProperty T2,X

Total Fixed Costs, '.


Federal Tax Shield

Net Cost After Tax

D'j ffere TIC e

1 5:.101 [;.00. 590

1 6203070

laO

5 340

13 120

6 298

6 822

1 !:YB

2 8001 1701 510

5 620

16 000

7 680

8 320

Gro\'rlh Eo te 5 '1~

..

INCOME STATEMENT

YEAR 1988

,(Dollars in Thousands)r

E1ectdc

Variable Cost

Diesel

Energy .- K\<IHEnergy - Fuel and Lube OilCatenary Ha i ntcnanu'LocOfnotive f·jaintenanceICC Inspection


Fixed Cost

Co.tc:nar.y 2nd SuLctutioll Lec:.sC'Locomotive LeaseLocomotive DepreciationLocomotive InterestSignal DepreciationSignal Int0.i'C'st

. Property lax

Total Fixed Costs


Federal Tax Shield

Net Cost After Tax

4 580

1 4703 020

130

10 200

1 ') t;"~ -'\..'

1 800

1 570L~ 120

30L,O

L:40

9 550

19 }SO

9 1;80

10 270

6 560

9 550290

2 8002 4002 7L~O

260

.8 200

24 600

11 808

12 792

INCOME STATEMENT

YEAR 1993


Electric

Variable Cost,

Diesel

Energy - KHHEnergy - Fuel and Lube OilCatenary MaintenanceLocomotive MaintenanceICC Inspection


Fixed Cost

Catenary and Substation LeaseLocomotive LeaseLocomotive DepreciationLocomotive InterestSignal DepreciationSignal Interest

. Property Tax

Total Fixed Costs


Federal Tax Shield

·Net Cost After Tax

Difference

6 140

3 5104 920

220

14 790

1 5501 8002 6106 250

3010

670

12 920

27 710

13 301

14 409

8 819

9 940

15 560470

25 970

.8 1809 600.

920

1.8 700

44 670

21 442

23 228

Growth Rate 5 %

INCOME STATEMENT

YEAR 1998


Electric

Variable Cost

Diesel

Energy - KWHEnergy - Fuel and Lube OilCatenary Maintenancelocomotive MaintenanceICC Inspection


Fixed Cost

Catenary and SUbstation Leaselocomotive Leaselocomotive D~preciation

locomotive InterestSignal DepreciationSignal InterestProperty Tax

Tot~i Fixed Costs


Federal Tax Shield

Net Cost After Tax

Difference

·8 240

4 4808 010

360

21 090

1 550

4 2709 370

30

1 050

16 270

37 360

17 933

19 427

15 782

l5 070

25 340770

41 180

12 34012 980

1 210

2.6 530

67 710

32 501

35 209

Growth Ra te 5 %

INCOME STATEMENT

YEAR 2003


Electric

Variable Cost



Fixed Cost

Diesel

Catenary and Substation leaselocomotive LeaseLocomotive DepreciationLocomotive InterestSignal DepreciationSignal InterestProperty Tax

"

Total Fixed Costs


Federal Tax Shield

1 550

7 020 20 64014 610 19 040

30

1 680 1 700

24 890 41 380

55 290 106 750

26 539 51 240

Net Cost After Tax

Difference

28 751

26 759

55 510

Growth Ra te 5 %

~.'

INCOME STATEMENT

YEAR 197ft


F1 r:>rtri c

Varia.ble Cost

Energy - KWIEne~gy - Fuel and Lube OilCatenary Haintenancelocomotive MaintenanceICC Inspection


Fixed 'Cost

Diesel

· ', ,

Catenary arid SUbstation LeaseLocomotive Leaselocomotive Depreciationlocomotive InterestSignal DepreciationSigna', InterestProperty Tax

Tot~l Fixed Costs


Fede~al Tax Shield

Net Cost After Tax

Oi ffei"ence

1 5501 800

,3090

3 470

7 330

7 330

'. 20

2 800

2 800

7 350

7 350

GrmJth Relte 2.7 <Y10

INCOME STATEMENT

YEAR ..1.275_


Electric

Variabl e Cost

Enej~gy .- KHHEnergy - Fuel and Lube OilCatenary MaintenanceLocomotive r·ljaintenanceICC Inspection


Fixed Cost

Catenary and Substation Leaselocomotive LeaseLocomotive DepreciationL.ocomotive InterestSignal DepreciationS-igna-l InterestProperty Tax

Total Fixed Costs'.


Federal Tax Shield

1 5501 800 2 800

30 40

90 603090

3 590 .2 900

7 6GO 7 790

Net Cost After Tax

Difference

7 660

130

7 790

Growth Rate 2~701iO

r ...'!. 1

;

.I

INCO~1E STATH1ENT

YEAR 1976


Variable Cost

Energy - KimEnergy - Fuel and Lube OilCatenary MaintenanceLocomotive MaintenanceICC Inspection


Fixed Cost

Dieser

Catenary and Substation LeaseLocomotive LeaseLoco~otive DopreciationLocomotive InterestSignal DepreciationSignal Interest

-Propel~ty Tax

Tota1\ Fi xed Costs

Total -~ Variable and Fixed Costs

Federal Tax Shield

Net Cost After Tax

Oi ffet~ence

1 5501 800

SO130

3090

3 650

7 930

"1 930

-340

2 800100140

8 270

8 270

'.

"';"

INcm'1E STtI.TEi':lENT

YEAR 1977


Electric

Vad an1e Cost

Energy - KvJHEnergy - Fuel and Lube OilC~tcnary Maintenancel.ocomotive /·1aintenanceICC Inspection


Fixed Cost

Diesel

Catenary and Substation leaseLocomotive L.easeLocomotive DepreciationLocomotive lriterestSignal DepreciationSi gna 1 Intei'estProperty Tax

Total Fixed Costs


Federal Tax Shield

Net Cost After Tax

01 ffcf'ence

1 5501 800

80230

3090

3 780

8 290,

8 290,

2 800

200

3 140

8 7£,0

,. .~ GrovrLh Ra tf?

INCOME STATHifNT

YEAR -li2L


Electric

Variable Cost

Enel'gy - K\~H

Energy - Fuel and Lube OilCatenary Ha.intenanceLocomotive MaintenanceICC Inspection


Fixed Cost

Diesel

~." :

,,. '."

'. .... .~

Catenary and Substation LeaseLocomotivE.' LeaseLocomotive Depreciationlocomotive InterestSignal DepreciationS-; gnal Interest

. PropQt'ty Tax- ... .~

Total Fixed Costs


Fede~al Tax Shield

Net Cost After Tax

0; ffeh~nce

1 5501 800

no330

3080

3 900

8 6/,0

. 660

2 800,200290

3 290

9 300

9 300

: -.I

. '

INCOME STf\TEf.1ENT

(Doliars in Thousands)

Variable Cost

Diesel

Energy - KI.JHEnergy - Fuel and Lube Oil,Catel1Cll~Y i'la i ntenanceLocomotive MaintenanceICC Inspection

.Total Variable Costs

Fixed Cost

2 8003 SltO

1 9/:01 520 4 810

70 150

6 330 "8 500

~; .- ;

Catenary and Substation LeaseLocomotive Leaselocomotive Depreciationlocomotive InterestSignal DepreciationSignal Intci'est

'Property Tax

Total Fixed Costs

Total -- Variable und Fixed Costs

Federal Tax Shield

Net Cost After Tax

Di ffen'nce

1 550

1 800290800

3070

Ll 5t~o

'10 8'70

10 -870

"{ 700

2 800560710

A 070

12 570

12 570

'- .~ .

II

YfA R 13.B1L..-


Energy - KI·iHEnergy - Fuel and Lube OilCatenary MaintenanceLocomotive MaintenanceICC Inspection

. Total Vctriable Costs

Fixed Cost

Di esc1

r...:

Catenal'Y and Substation LeatcLocomotive LeaseLocomotive DepreciationLocomotive InterestSignal DepreciationSigna"l Interest

. ~roperty Tox, .

Total" Fixed Costs\.

Totol -- Variable and Fixed Costs

Federal Tax Shield

Net Cost After Taxo.

Difference

1 5501 BOO

8902 330

301,<0

6 6[,0

14 780

2 8001 1101 21tO

5 150

17 180

17 180

INCOME STATEMENT

YEAR 1993

~Dollars in Thousands)

El ectri c

Variable Cost

Di esel


lotal Variable Costs

Fixed Cost

Catenary and Substation Leaselocomotive LeaseLocomotive Depreciationlocomotive InterestSignal DepreciationSignal Interest

. Property Tax

Toi~iFixed Costs


Federal Tax Shield

Net Cost After Tax

Difference

4 030

3 --510. 3 230

140

10 910

1 5501 8001 2802 950

3010

7 620

18 530

18 530

10 310

6 530

10 210310

17 050

5 4106 380

11 790

28 840

28 840

Growth R~te 2.7 %

-'.v'

,...,.

INCOME STATEMENT

YEAR 2003

~(Dollars in Thousands)

Electric

Variable Cost



Fixed Cost

Diesel

Catenary and Substation Leaselocomotive Leaselocomotive DepreciationLocomotive InterestSignal DepreciationSignal Interest

. ~roperty Tax

Total Fixed Costs


Federal Tax Shield

Net Cost After Tax

Difference

1 550

2 7004 900

30

9 180

27 880

27 880

22 490

9 1606 820

15 980

50 370

SO 370

Grm'lth Ra te 2.7 %

. .

INCOi"1E STAHJ1ENT


Electric

Variable Cost

Energy - KimEnergy - Fuel and Lube OilCatenary MaintenanceLocomotive MaintenanceICC Inspection


Fixed Cost

Diesel

Catenary and Substation LeaseLocomotive LeaseLocomotive DeprecietionLocomotive Intc;restSignal Depreciation.Signal Interest. Property Tax

Tot~l Fixed Costs\"

Total -- Variabl~ and Fixed Costs

Feder~l Tax ~hield

Net Cost After Tax

Diffen:;nce

1 5501 800

3090

3 470

7 330

7 330

20

2 800

2 800

7 350

7 350

..!

INCOME STATEMENT

YEAR 1975


Eloctric

yariable Cost

Energy - K\'!HEnergy - Fuel and Lube OilCatenaY'y rita oj ntenanceLocomotive MaintenanceICC Inspecti on


Fixed Cost

Diesel

Catenary and Substation Leaselocomotive LeaseLocomotive DepreciationlOCoulOtive InterestSignal DepreciationSi~Fial Inter'est

. Property Tax

Totril Fixed Costs\.


Federal Tax Shield

Net Cost After Tax

o·r ffercnce

1 5501 800'

Ita

1303090

'7 flo

7 /'70

210

2 800.80no

2 990

7 980

7 980

Gro\'rth f~a tc 5

. '.

INCOME STATEMENT

~(Dol1ars in Thousands)

Ucctric

Variable Cost

Energy - KI'1HEnergy - Fuel and Lube OilCatenary MaintenanceLocomotive MaintenanceICC Inspection


Fixed Cost

Diesel

. .

Catcl1il),'y 2nd Substation LeaseLocomotive L0~SC

L .' ~ ..ocOmOtlVC ueprcclatlonLocomotive InterestSignal DepreciationSignal Interest

.. Property Tax. \

Tot~l Fixed Costs"

'.


Federal Tax Shield..

Net Cost .After Tax

1 5501 800

90270

3090

3 830

8 250

8 2.50

2 800170260

"3 230

8 700

8 700

Groh'Lh PZl. te

INCOME STATEMENT


Vadab'j t: Cost------_._---

Energy - K!'JHEnergy - Fuel and Lube OilCatenary t·ja i nten::;nceLocomotive MaintenanceICC Inspection


Fixed Cost:

Diese"l

Catenary ilne! SubSt21tiof1 LCdSCLoc(JrHoi;'ive LeoseLoconJot i vc; DeDn~c i at ionLOCO,i1otive InterestSignal DepreciationSignal Interest

·'PropE>rty Tax\

Tot~l Fixed Costs"

'..

Total -~ Variable and Fixed CO$ts

Feder~l Tax Shield

Net Cost After Tax

Oi ff cr'"ence,

1 :;50

1 800Ilj ()

4103090

4 020

8 750

8 750

720

2 800280400

9 lf70

9 470

I: .

r ",!

;'

INCOHE ST!\lTH-:NT

YEAR 1978


Energy - KImEnergy - Fuel and Lube OilCatenal~Y Hil i ntenanceLocomotive HaintenancE:ICC Inspect -i on


Dh:s(~l:------

Catonal-y and Substat-lon LeaseLocomotive Leaselocomotive DepreciationLocomotive InterestSignal DepreciationSignal Interest

:Property Tax. " .. \

Total Fixed Costs\.

Total -- Var~able and FiXEd Costs

Federal Tax Shield,.

Net Cost After Tax

O-ifference

1 5501 800

190560

3080

4 210

9 '270

9 ~:jQ

2 800390550

10 300

10 300

5

YEAR 1983--- --.._--

,(Dollars in Thousands)

Va.r)c(hle Cost-------Enel'q y - KW·!Ener~~ - Fuel and Lube OilCatenary MaintenanceLocomotive MaintenanceICC Inspection


Catenary and Substation LeaseLocomotive LeaseLocomotive DepreciationLocomotive InterestSignal DepreciationSignal Interest

>P"'O'- ,..,\-.~." ..,. ~ V" rJt..::1 \.-.,1 ICl.l'"\.

Total Fixed Costs\


Federal Tax Shield

Net Cost tfter Tax

0'1 ffen.T:ce

1 5501 800

5901 620

3070

5 660

12 :;/;·0

2 920

2 8001 1701. 510'

15 860

15 860

Gto,;/"t.h P'.-\ tt: r: e'.) ,)

!NCOHE STf;TG1ENT-----_._._~-

(Dollars in Thousands)',.

.'

~.' .'>

Energy - K!dHEnergy - Fuel and Lube OilCatenary MJintenanceLocon:oti \' e !,1a·r ntena neeICC Inspection


. F-lxC'd Cost

Catf;n<:~r·.y and Subst;Jt-ion LeaseLOCO:tl0t i Vi:..' LeaseLocomotive DeDreciationLocomotive In~erestSignal Deprcciction.Signa" Interest

:ProlJerty Tax.",

Total Fixed Costs


Federal Tax Shield

Net Cost After Tax

D1 ffer.cnce

J ~50

1 (;001 57011 120

3040

9 110

19 ")'1 r).J ,I.U

19 310

2 BOO2 1;002 7t,O.

7 940

CrO\'ltrl R(~tr:5 D,-'

l.J

INCOME STATEMENT

YEAR 1993


Electric

Variable Cost

Diesel



Fixed Cost

Catenary and Substation LeaseLocomotive Leaselocomotive DepreciationLocomotive InterestSignal DepreciationSignal Interest

. Property Tax

Total Fixed Costs,


Federal Tax Shield

Net Cost After Tax

Difference

6 140

3 5104 920

220

14 790

1 5501 8002 6106 250

3010

12 250

27 040

27 040

9 940

15 560470

25 970

8 180·9 600

17 780

43 750

. 43 750

16 710

Gro\'Jth Ra te 5 %

· ,

INCOME STATU1ENT

YEAR 1998

{Dollars in Thousands)

Electric

Variable Cost


Iotal Variable Costs

Fixed Cost

Diesel

Catenary and Substation Leaselocomotive Leaselocomotive Depreciationlocomotive InterestSignal DepreciationSignal Interest

·.Property Tax'. \

Toi~l· Fixed Costs.,\.

Total -- Variable and Fixed Costs!

Federal Tax Shield

Net Cost After Tax

Difference

15 220

36 310

36 310

30 190

is 320

66 500

66 500

Growth Rate 5 %

o INCOME STATEMENT

YEAR 2003


Electric

Variable Cost



Fixed Cost

Diesel

Catenary and Substation Leaselocomotive Leaselocomotive Depreciationlocomotive InterestSignal DepreciationSignal Interest

. Property Tax.. "..

Tota'·Fixed Costs..\.


Federal Tax Shield

. Net Cost After Tax

Difference

1 550

7 02014 610

30

23 210

53 610

53 610

51 440

20 64019 040.

39 680

105 050

105 050

Growth Ra te 5 %

proposal for completiondiesel fuel rate (¢/gal) . . '. i 1.12.4 16. lube oil expense (% of...

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