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Railroads

Illinois Commerce Commission Approves Supplemental Order for Improved Public Safety at Railroad Crossings

Strategic Insights

— 1 min read

The Illinois Commerce Commission has issued a regulatory document outlining a stipulated agreement between the Illinois Central Railroad Company, local governments, and the Illinois Department of Transportation to improve public safety at two railroad crossings in Macon County. The agreement requires the railroad company to install automatic warning devices at the crossings, which were completed on October 20, 2023. However, due to inflation and unanticipated delays in material and labor costs, the company has incurred additional expenses, requesting a GCPF funding increase and extension of time to submit the final bill.

Key Takeaways:

  • The Illinois Commerce Commission has approved a supplemental order to increase GCPF assistance to the Illinois Central Railroad Company for cost overruns, totaling $580,292.70.
  • The railroad company completed the installation of automatic warning devices at the two crossings on October 20, 2023, but submitted a "Final Bill" to IDOT on March 29, 2024.
  • Staff believes it is fair and reasonable to recommend granting a retroactive extension of time to and including March 29, 2024, and increasing GCPF assistance by $82,432.70.
  • The Commission recommends final payment from the GCPF and project closeout within six (6) months from the date of the attached Supplemental Order.
  • The primary cause of the increased cost was rapid inflation in material and labor costs from 2021 to 2023.
  • The Illinois Central Railroad Company has submitted a Completion Report/Crossing Inventory Update, and a PETITION FOR A SUPPLEMENTAL ORDER, which includes a request for additional GCPF assistance, extension of time, and re-opening the docket.

Statistics:

  • The total GCPF reimbursement received by the Illinois Central Railroad Company is $497,860, which was the original GCPF not-to-exceed (NTE) limit.
  • The increased cost for the project totals $580,292.70, with 95% of the actual final total cost being eligible for GCPF reimbursement.
  • The new total GCPF NTE limit is $580,290.70.
  • The IC has requested an extension of time, retroactively to and including March 29, 2024, to process the final bill for refund.

Sources:

  • Docket Number: T22-0004
  • Illinois Commerce Commission
  • ROM Date: 08/14/2024
  • M E M O R A N D U M TO: The Commission
  • FROM: Brian Vercruysse, Rail Safety Program Administrator
  • DATE: July 31, 2024
  • Illinois Central Railroad Company (IC)
  • Illinois Department of Transportation (IDOT)
  • Macon County Highway Department
  • Illini Township Road District
  • State of Illinois, Department of Transportation

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