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RCED-83-35 1 (1982-10-15)

handle is hein.gao/gaobabmsa0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 October 15, 1982 RESOURCES, COMMUNITrY AND IIONOMIC oovv,,,ow RELE0 A ASED B20948 VOREISTRICTED - Not to be relfAsed cLfld the Oeneral B-209428 AesOntigg Office excct on the basis of specific approval OY Via Office of Congrass~ouiai Rlatiot$ The Honorable Paul S. Sarbanes United States Senate Dear Senator Sarbanes: 119979 Subject: Amtrak Charges for Maryland Department of Transportation Commuter Train Use of the Washington Union Station (GAO/RCED-83-35) In your July 16, 1982, letter, you asked us to analyze the charges the National Railroad Passenger Corporation (Amtrak) is assessing for the use of the Washington Union Station terminal by Maryland Department of Transportation (MDOT) commuter trains. You asked for this analysis in view of a recent Interstate Commerce Commission (ICC) Decision Ex Parte No. 417 (Sub. 1), January 22, 1982, on Costing Methodologies for Northeast Cor- ridor Commuter Services. You expressed concern that Amtrak may be charging costs to MDOT under the fully allocated 1/ cost principle instead of avoidable costs 2/ as ICC has required of Amtrak for other commuter facilities on the Northeast Corridor. You also asked us to analyze the costs Amtrak assesses MDOT for using the terminal to determine whether the costs are too high in light of ICC's ruling. We briefed your staff on September 10, 1982. We reported that ICC Decision Ex Parte No. 417 (Sub. 1) provides that costs for Northeast Corridor use by commuter trains are to be allocated on an avoidable cost basis, instead of on a fully allocated cost basis. The Director of ICC's Rail Service Planning Office told us that ICC's decision applies to the allocation of Union Station costs between Amtrak and MDOT commuter trains and that Union Station is considered part of the Northeast Corridor. .1/A principle of cost allocation that assumes that all costs in- curred in operating the terminal are to be considered, and that reimbursement to Amtrak for commuter train use of the terminal should be based on a percentage of actual use of the terminal by Amtrak and the commuter trains. 2/A principle of cost allocation that requires that only the additional costs incurred by Amtrak to accommodate the commuter trains are to be reimbursed to Amtrak. (343770)

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