L. E. Peabody & Associates, Inc. (since 1978) -- Mr. Prescott has more than thirty-five (35) years of experience solving economic, marketing, transportation and coal supply problems. He has directed and organized economic studies, prepared reports, developed and presented testimony on behalf of major producers and utilities. On numerous occasions, Mr. Prescott has presented testimony before the Surface Transportation Board ("STB") and its predecessor the Interstate Commerce Commission. Mr. Prescott also has prepared and presented written and oral testimony before the Postal Rate Commission ("PRC").
Mr. Prescott has participated in the direction and organization of economic studies and preparation of reports for railroads, shippers, shipper associations, state governments and other public bodies dealing with transportation and related economic problems involved in the analyses of multiple car movements, unit train operations, divisions of through rail rates and switching operations throughout the United States.
Mr. Prescott has also participated in studies which utilize the various formulas employed by the STB, including the Uniform Railroad Costing System ("URCS") and the Speed Factored Gross Ton ("SFGT") formula; the development of variable costs for common carriers with particular emphasis on the general purpose costing system for rail carriers; the development and analysis of costs for various short-line railroads; and the development of numerous computer models designed to calculate and analyze items such as variable costs, rate and cost escalation, capital costs for railroad equipment using various financing vehicles, train crew wages, and railroad-specific profitability based on total revenues and costs.
Mr. Prescott has been responsible for the analysis and development of cost based rate/price adjustment mechanisms used in long term and short term coal supply and transportation contracts. Mr. Prescott has been responsible for the development of research on the various escalation procedures developed for and employed in transportation and coal supply contracts. His research has shown that application of 100 percent of the change in a price index to existing rate/price levels overcompensates carriers/suppliers for changes in costs.
Mr. Prescott has designed and continually monitors economic models which forecast the change in inflation, prices and costs. These economic models forecast general economic indices, certain transportation related indices, certain coal production indices, railroads' cost of providing service, and producers' cost of mining coal.
Mr. Prescott has participated in the negotiation of long term coal supply and rail transportation contracts and amendments. His research has assisted clients with the calculation of the overall economic value of all components of a contract price, including such items as the volume, term and adjustment mechanism. Mr. Prescott has constructed economic models designed to evaluate the options available during the negotiating process. The models evaluate the economic impact of buy-out or buy-down provisions as well as the value of other terms of the contract.
In every major mail classification and rate design case since PRC Docket R90-1, Mr. Prescott has critiqued and restated the direct testimony of the United States Postal Service as it related to the development of the proposed rate structure on behalf of bulk mailers, various associations, and other providers of mailing services.
Previous Related Experience -- During the two years prior to 1978, Mr. Prescott was a summer intern with L. E. Peabody & Associates, Inc.
Mr. Prescott received a BA in Economics from the University of Maine at Orono in 1978.