This page has been archived on the Web.

Information identified as archived is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please contact us to request a format other than those available.

Consultation on methodology for determining CN's and CP's Capital Structure under the Maximum Revenue Entitlement Program

The consultation is closed

This consultation took place between September 7 and November 18, 2016.

We are analyzing the input.

Agency staff is seeking interested parties' views on the methodology for determining the capital structure of Canadian National Railway Company (CN) and Canadian Pacific Railway Company (CP) for the determination of the cost of capital of the two Railway Companies.

In Agency Decision No. 131-R-2016, the Agency announced the launch of a consultation into the Agency's methodology for determining the prescribed railway companies' capital structure, as follows:

[27] … in keeping with the process for proposing methodological changes, the Agency will, through staff consultation with industry participants, review its methodology for the establishment of the capital structure for the prescribed railway companies. The Agency intends to rule on an appropriate methodology for application in the 2017-2018 VRCPI determination.

 Issues to be addressed

  1. The specific items to be included in a determination of the capital structure; and
  2. A methodology for determining the working capital allowance component of the capital structure.

How to participate

Interested parties are invited to respond to questions in the Agency's discussion document and provide their comments.

To request a copy of the discussion document, please email with the subject line: Consultation on capital structure.

Please note that the consultations close Friday, October 14, 2016.

The Agency will publish all received responses on its consultations website by October 21, 2016.

Participants will then be allowed until November 18, 2016 to provide their views and comments on responses by other participants, if they so choose.

Email your submission to

Questions?  Email

TTY:  1-800-669-5575


Wednesday, May 3, 2017
We are analyzing the input.
Date modified: