§404.102. Ratemaking step 2: Project operating expenses, adjusting for inflation or deflation. — Inbound Citations

(a) The Director establishes base pilotage rates by a full ratemaking pursuant to §§ 404.101 through 404.109, which is conducted at least once every 5 years and completed by March 1 of the first year for which the base rates will be in effect. Base rates will be set to meet the goal specified in § 404.1(a).

The Director calculates each pilotage association's base projected needed revenue by adding the projected adjusted operating expenses from § 404.102 (step 2) and the total target pilot compensation from § 404.104 (step 4).

The Director calculates initial base hourly rates by dividing the projected needed revenue from § 404.105 (step 5) by averages of past hours worked in each district's designated and undesignated waters, using available and reliable data for a multi-year period set in accordance with § 401.220(a) of this chapter.