Indexing the Annual Operating Revenues of Railroads

The Surface Transportation Board (Board) is publishing the annual deflator factor and inflation-adjusted railroad revenue thresholds for 2024. The deflator factor is used by the railroads to adjust their gross annual operating revenues for classification purposes. This indexing methodology ensures that railroads are classified based on real business expansion and not on the effects of inflation. Classification is important because it determines the extent to which individual railroads must comply with the Board's reporting requirements.

The Board's annual deflator factor is based on the annual average of the Producer Price Index (PPI) industry data for line-haul railroads published by the Bureau of Labor Statistics (BLS) and is used to deflate revenues for comparison with established revenue thresholds.

Application of the annual deflator factors for 2020-2024 results in the following annual revenue thresholds: ( printed page 26898)

The annual inflation-adjusted deflator factor and revenue thresholds for 2024 are effective January 1, 2024. Notice of this decision will be published in the Federal Register .

By the Board, Kristen Monaco, Ph.D., Director, Office of Economics.