Canada Transportation Act

Marginal note:Maximum revenue entitlement

• 151 (1) A prescribed railway company’s maximum revenue entitlement for the movement of grain in a crop year is the amount determined by the Agency in accordance with the formula

  [A/B + ((C - D) × $0.022)] × E × F

  where

  A

  is the company’s revenues for the movement of grain in the base year;

  B

  is the number of tonnes of grain involved in the company’s movement of grain in the base year;

  C

  is the number of miles of the company’s average length of haul for the movement of grain in that crop year as determined by the Agency;

  D

  is the number of miles of the company’s average length of haul for the movement of grain in the base year;

  E

  is the number of tonnes of grain involved in the company’s movement of grain in the crop year as determined by the Agency; and

  F

  is the volume-related composite price index that applies to the company, as determined by the Agency.

• Marginal note:Canadian National Railway Company

  (2) For the purposes of subsection (1), in the case of the Canadian National Railway Company,

  • (a) A is $348,000,000;

  • (b) B is 12,437,000; and

  • (c) D is 1,045.

• Marginal note:Canadian Pacific Railway Company

  (3) For the purposes of subsection (1), in the case of the Canadian Pacific Railway Company,

  • (a) A is $362,900,000;

  • (b) B is 13,894,000; and

  • (c) D is 897.

• Marginal note:Volume-related composite price index

  (4) The following rules are applicable to a volume-related composite price index:

  • (a) in the crop year 2016-2017, each prescribed railway company’s index is 1.3275;

  • (b) an index shall be determined in respect of each prescribed railway company; and

  • (c) the Agency shall make adjustments to each prescribed railway company’s index to reflect the costs incurred by the prescribed railway company to obtain hopper cars for the movement of grain and the costs incurred by the prescribed railway company for the maintenance of those hopper cars.

• Marginal note:When Agency to make determination

  (5) The Agency shall make the determination of a prescribed railway company’s maximum revenue entitlement for the movement of grain in a crop year under subsection (1) on or before December 31 of the following crop year and shall make the determination of a prescribed railway company’s volume-related composite price index on or before April 30 of the previous crop year.

• Marginal note:Making of adjustments

  (6) Despite subsection (5), the Agency shall make the adjustments referred to in paragraph (4)(c) at any time that it considers appropriate and determine the date when the adjusted index takes effect.