33

Part 1
Factors to Consider in Making
Electrification Economic Studies1
1976
TABLE OF CONTENTS
Section/Article

Description

Page

1.1 General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.1.1 Objective (1976) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.1.2 Basic Procedure (1976) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.1.3 System Operation (1976) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.1.4 Electrical Distribution Systems (1976) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.1.5 Data (1976) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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1.2 T raffic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.2.1 Gross Ton Miles (1976) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.2.2 Passenger T rains (1976) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.2.3 T rain Size and Speed (1976). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.2.4 T raffic Projection (1976). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.2.5 T rain Schedules (1976) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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1.3 Capital Equipment Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.3.1 Locomotives (1976) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.3.2 Locomotive Facilities (1976) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.3.3 Power Generating Facilities (1976) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.3.4 Power Distribution Systems (1976) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.3.5 Substations (1976) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.3.6 Power T ransfer (1976) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.3.7 Clearance Modification (1976) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.3.8 Signal Modification (1976) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.3.9 Communications (1976) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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References, Vol. 77, 1976, p. 181. Adopted 1976.

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TABLE OF CONTENTS (CONT)

Section/Article

Description

Page

1.4 Annual Operating Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.4.1 General (1976) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.4.2 Fuel and Energy (1976) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.4.3 T rain Crew Wages (1976). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.4.4 Locomotive Maintenance (1976) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.4.5 Catenary Maintenance (1976) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.4.6 Substations and T ransmission Line Maintenance (1976) . . . . . . . . . . . . . . . . . . . . . . . . .
1.4.7 Signal and Communications Maintenance (1976) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.4.8 Taxes (1976) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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1.5 Maintenance-of-Way Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.5.1 General (1976) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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1.6 Intangible Benefits and Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.6.1 General (1976) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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SECTION 1.1 GENERAL

1.1.1 OBJECTIVE (1976)
The prime objective of an electrification economic study is to determine if electric operation of a particular
railroad is more advantageous than operation with another form of power which may or may not be in actual
use. This is written from the commercial viewpoint of a privately operated railroad.

1.1.2 BASIC PROCEDURE (1976)

Each identifiable cost associated with the different types of power must be quantified for economic comparison.
Since most electrification studies will cover a period between 20 and 50 years into the future, costs should be
separated into two basic categories: initial one-time expenses, and annual costs which are subject to continuing
inflation. Separate inflation rates should be specified for each annual cost to properly compare types of power
over a long period of time. Extra care should be taken in determining inflation rates since they will be
compounded over the life of the study. Intangible costs and benefits or liabilities should be listed for review at
the end of the study, unless they are directly associated with a tangible cost.

1.1.3 SYSTEM OPERATION (1976)

Prior to any detailed analysis, the segment(s) of railroad to be studied must be precisely defined as well as the
basic parameters of operation. Train size, speed, frequency, etc., should be made constant for all types of power
studied to permit a valid initial comparison. The detailed study should include the economic effects of changing
the operating parameters to that most favorable to each type of power being compared.

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1.1.4 ELECTRICAL DISTRIBUTION SYSTEMS (1976)

A cursory review of the various types of electrical distribution systems: third rail direct current, 12.5-kv
alternating-current catenary, 50-kv alternating-current catenary, etc., should be made to determine which
system or combination of systems is most applicable for the specific case under study. Detailed analyses can
start after this preliminary determination is made.

1.1.5 DATA (1976)

A base year should be chosen from which all data can be projected. The data for this base year must be as
reliable as possible, thus considerable effort should be spent to review all sources of information for their
accuracy and completeness.

SECTION 1.2 TRAFFIC

1.2.1 GROSS TON MILES (1976)
Freight Traffic The most common unit for computing energy and maintenance costs is the gross-ton-mile.
The number of gross-ton-miles operated over the railroad under study should be thoroughly reviewed to
ascertain what percentage of the total could be hauled electrically. Locals or trains that would travel only a
short distance over electrified territory may be moved more economically using non-electric locomotives. Total
annual gross-ton-miles can then serve as a base for computing energy and maintenance cost for both electric
and nonelectric systems.

1.2.2 PASSENGER TRAINS (1976)

Due to the high acceleration and speed required of passenger trains, they are frequently treated separately
from the freight service. If they are present and being dealt with independently, the gross-ton-miles generated
by the passenger trains should be subtracted from the total being hauled electrically. Since passenger trains
outside the northeast have only minimal impact on electrification studies, their economics are not covered in
this outline.

1.2.3 TRAIN SIZE AND SPEED (1976)

For proper comparison of energy demands, the size and speed of typical trains should be specified for operation
electrically or with other forms of power. Initially, this parameter should be the same for any type of power;
however, as the study becomes more detailed, it may become obvious that one type of power is more economical
using a different train size and speed. For evaluation purposes, any changes in train size and speed should be a
separate portion of the study,

1.2.4 TRAFFIC PROJECTION (1976)

The facts reviewed in the study for traffic projection are very critical. A large growth rate when compounded
over many years can saturate the existing track and signal system creating a requirement for CTC or additional
mainline track. Negative growth rate can impact the study outcome by causing savings to diminish in the
future.

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1.2.5 TRAIN SCHEDULES (1976)

The average daily traffic must be specified by number of trains, size of trains, and the timetable schedule of
trains. The maximum daily traffic must be specified in the same manner. The minimum acceptable train
performance (train speed, size and frequency) under emergency conditions (substation outage, excessive train
density, etc.) should be specified.

SECTION 1.3 CAPITAL EQUIPMENT COSTS

1.3.1 LOCOMOTIVES (1976)
a.

Based on the traffic, terrain, train size and schedules, the electric locomotives weight, wheel
configuration, power and speed capabilities can be selected. This selection should be carefully
coordinated with the builders of electric locomotives to insure the commercial availability and a valid
cost estimate. Locomotives with prime movers other than standard diesel engines should likewise be
selected with care.

b. If the electrified system is to be compared to diesel locomotives it should be determined whether to use
existing types of diesel-electrics or for comparison use a new model not yet manufactured. As with
electrics, the various manufacturers should be consulted to insure reliable cost data.
c.

Extreme care should be taken to insure that enough locomotives of each type have been provided to
cover peak traffic periods, allow downtime for scheduled and unscheduled maintenance, and provide for
possible future schedule changes which would require more locomotives with the same traffic. Past
experience has shown the electric locomotive to have a higher availability and utilization than other
types. Computer generated speed and time/distance calculations can be of great assistance. Energy and
power, time, and distance calculations made at the same time are invaluable in computing electric power
consumption and cost as well as diesel fuel consumption and cost.

1.3.2 LOCOMOTIVE FACILITIES (1976)

a.

The existing mechanical facilities should be thoroughly reviewed to determine what changes will be
necessary to maintain electric locomotives. Some of the more modern diesel facilities can be used for
electric locomotive maintenance with virtually no changes, while old roundhouse operations may be
totally unfit for any maintenance work.

b. Main-line electrification may segment the remaining diesel service to such a great extent that new diesel
maintenance shops must be built to care for the diesels running branch lines and locals. Maintenance
facilities for both diesels and electrics should be an important factor in determining the end-points for an
initial electrification project.
c.

High-voltage catenary is not to be recommended inside a maintenance shop where the risk of employee
injury is much greater due to the type of work being done. If it becomes necessary to have high-voltage
inside a shop, special waxing devices should be installed to alert all workers when the high-voltage is
energized. Locomotive cleaning and sanding facilities, which will be used by both diesels and electrics,
should be checked to insure safe operation with the electric locomotives while the power is on.

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1.3.3 POWER GENERATING FACILITIES (1976)

Railroads still face some locations where it is more economical to build an electric generating station than it is
to buy power from the local utility company. Locations may exist where local power is unavailable. If railroad
owned power generation is to be considered, studies by specialized electric utility engineers will be required to
determine capital, operating and maintenance costs.

1.3.4 POWER DISTRIBUTION SYSTEMS (1976)

A study should be made to determine the electrical power demand of each portion of the railroad to be
electrified. The utility companies should be consulted to locate transmission lines in the area suitable for use by
the railroad. On a high-voltage system, it is advisable to try and arrange for adjacent substations to be served
by different transmission lines in order to minimize the possibility of power failure which would affect more
than one substation. For substations located at the end of an electrified system, consideration should be given
to the installation of two transformers connected to two different transmission lines to minimize the possibility
of power failure. Sizing of the transmission line will be based on maximum present and future load. It is
frequently more economical to put up heavier wire or a few more insulators for a higher voltage transmission
line during initial construction than it is to retrofit after the load demand has increased. Single-phase
unbalance problems may be encountered and could require special substation connections.

1.3.5 SUBSTATIONS (1976)

a.

Substations are used to step the high transmission line voltage down to the voltage used on the catenary
or third rail. The alternating current is also converted to direct current at a substation when required for
third rail.

b. Equipment used in a substation should be capable of handling high overloads for relatively short periods
of time without failure. Substation transformers can be sized to permit initial loads with no forced
cooling; later, forced cooling can be added to support the increased traffic at minimal cost. It is common
practice to assume that a substation will be called upon to supply half of an adjacent substations load
during an emergency. Railway substation transformers should be equipped with extra bracing to prevent
damage during a short circuit. Either manual and/or remote control should be provided for each
substation. Provisions should be made to have a spare, mobile substation which will serve in an active
capacity when not being used as a replacement. For substations located at the end of an electrified
system, consideration should be given to the installation of two transformers connected to two different
transmission lines to minimize the possibility of power failure.
c.

Phase breaks at or between substations should be equipped with manual or remote controlled switch
gear to permit isolating or energizing adjacent catenary sections.

d. If remote control of substation and phase breaks is contemplated the cost of a central control point and
telemetry circuits cannot be overlooked.

1.3.6 POWER TRANSFER (1976)

a.

Two primary methods are used to transfer electrical power to the railway vehicle, third rail and overhead
wire. The cost of third rail includes the special contact rail, insulators, long ties or special brackets to
mount on the short ties, third-rail covers, right-of-way fencing, miscellaneous hardware and installation
labor costs. Ice and heavy snow cause electrical troubles with third-rail systems in many parts of the
world.

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b. Overhead wire comes in several different configurations with vehicle operating speed being the
determining factor. Simple trolley wire can be used for yards or track where the speed of multiple unit
consists will not exceed 30 mph. European tests have shown that stitched trolley wire can sustain speeds
of 60 mph with multiple unit consists. However, the current capacity of standard trolley wire may limit
trolley wire use to relatively low power situations. The simple sagged catenary is generally sufficient for
speeds up to 120 mph. Compound or stitched catenary is usually recommended for operation of trains
above 120 mph. Virtually all new catenary construction is of the constant-tension design which has
proven able to minimize trouble. At certain locations where power demand is extremely heavy, auxiliary
parallel feeders hung from the supports may be more economical than increasing the size of the catenary
wire or adding more substations. Catenary construction costs are generally more dependent on terrain
than third-rail costs due to the variation in support distance. Costs for overhead catenary should include
wire, insulators, supports, support foundations, tensioning devices, miscellaneous hardware, and all the
labor to install the system.
c.

Construction of both third-rail and overhead systems will disrupt railway traffic and require special
material trains. Expenses for special train crews, extra train crews and items such as flagman protection,
should be added to the cost of construction.

1.3.7 CLEARANCE MODIFICATION (1976)

Situations will arise with both third-rail and overhead system where the electrical clearance requirements will
necessitate the modification of nearby structures such as platforms, bridges and tunnels. Extremely high
modification costs may dictate a lower voltage or, in some cases, a short segment of electrically dead catenary or
third-rail.

1.3.8 SIGNAL MODIFICATION (1976)

Because of electrical interference from the traction power systems, electrification is not compatible with most
types of signals used in the United States. A detailed analysis should be made by the signal department to
determine the best type of modification to make signals compatible with the particular form of electrification
being considered. Trackside signal lines must be shielded from alternating current power systems. The cost to
upgrade a signal system, such as installing cab signals, should not be charged to electrification.

1.3.9 COMMUNICATIONS (1976)

Most open-wire communications circuits near an alternating-current power source must be either shielded or
converted to microwave. Microwave is frequently used for the long-distance circuits while shielded cable can be
used for local distribution circuits. Modern thyristor locomotives have been known to generate various forms of
signals which radiate beyond the railway property line. Special shielding of power circuits may be required in
urban areas to prevent interference with public communications systems.

SECTION 1.4 ANNUAL OPERATING EXPENSES

1.4.1 GENERAL (1976)
The annual operating expenses are critical in any electrification study and should be very carefully derived. The
electrification of a railroad has the potential to affect virtually every cost encountered in daily operations. The
difference in operating expenses between two or more propulsion systems is what creates a return on
investment and determines which system is the most economical when compared to the initial capital costs.

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1.4.2 FUEL AND ENERGY (1976)

The cost of energy or fuel delivered to locomotives must be ascertained for each system being studied. Fuel
costs should include all transportation, pumping and labor costs. Electric energy bills usually include a demand
charge, energy charge, fuel adjustment and possibly a rental on some fixed equipment. If the cost of fuel and
energy are changing at different rates, separate inflation factors should be developed for each. Attempts to
increase the electrical load factor frequently result in train rescheduling and a separate option in the final
analysis of electrification.

1.4.3 TRAIN CREW WAGES (1976)

Train crews may be paid on a basis that will change after electrification. Fewer locomotives with less weight on
drivers could reduce the wages earned by the engine crew. Higher acceleration and top speed could reduce
overtime or possibly the number of crews required to operate a particular section of railroad.

1.4.4 LOCOMOTIVE MAINTENANCE (1976)

a.

The cost of maintaining locomotives using different sources of power is usually one of the most
important aspects of any electrification study and frequently requires the most time and effort to
determine precisely.

b. All costs associated with maintaining each type of locomotive should be carefully derived to insure that a
true comparison is given. If possible each cost should be broken down into labor and material for
application of the appropriate inflation factor. It is essential that all subdivisions of locomotive
maintenance cost be included in the total. Some of the more frequent subdivisions include: locomotive
repairs, superintendency, shop machinery, power plant machinery, locomotive servicing, maintaining
power plants, maintaining fueling facilities, maintaining maintenance shops, insurance, unemployment
insurance, hospital insurance, personal injuries, health and welfare benefits, old age retirement, and
supplemental annuities. Recently, it has become a relatively common practice to capitalize the very
heavy repairs or rebuilding of locomotives; these costs should be taken into account The total
maintenance cost is most easily used when apportioned on a gross ton mile basis.
c.

However, greater accuracy can be achieved if the total cost can be divided into portions which are
predominantly a function of unit miles operated, horsepower-hours generated, or chronological age.

d. The cost of maintaining diesel electric locomotives can be easily obtained from existing records, while
costs associated with maintaining a modern electrical locomotive are frequently difficult to obtain from
experience in North America. Cost projections by electrical locomotive builders can form the basis for the
total cost, but extensive research should be done to determine the cost being experienced by users of
electric locomotives. Electrification studies frequently refer to electric locomotive maintenance cost as a
per cent of the diesel locomotive maintenance cost on a gross ton mile basis.

1.4.5 CATENARY MAINTENANCE (1976)

a.

While modern constant-tensioned simple catenary systems are much cheaper to maintain than the old
variable-tensioned compound systems, a certain amount of adjustment, wire replacement and repair
after derailments will be required. Catenary maintenance costs are influenced by terrain, trackwork
complexity, climate and rail traffic. Existing electrified systems should be reviewed to evaluate the
catenary maintenance requirements and costs prior to making projections for a new system.

b. Third-rail maintenance should be treated in the same manner as catenary maintenance.

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1.4.6 SUBSTATIONS AND TRANSMISSION LINE MAINTENANCE (1976)

The cost of periodically inspecting transformer oil, switch gear operation, substation facilities, supervisory
control systems, and clearing trees from the vicinity of transmission lines should be estimated. This is
frequently done by taking a small percentage of the initial installation cost as being the annual maintenance
cost.

1.4.7 SIGNAL AND COMMUNICATIONS MAINTENANCE (1976)

a.

Eliminating the open line wire on poles frequently associated with the existing signal system usually
means less maintenance of the system.

b. If cab signals or other signal improvements are separately justified, no effect will be felt on the
electrification economics. However, if electrification is the justification, such as installing CTC in order
to reduce the miles of catenary, all savings should be credited to electrification.

1.4.8 TAXES (1976)

a.

The large expenses required for electrification should be thoroughly reviewed by tax specialists to
determine the effects on taxes paid by the company. The increased valuation frequently increases
property taxes while the savings when translated to increased income can cause greater income taxes.

b. The effect on taxes made by various investment tax credits, depreciation reserves, and possibly existing
unused tax credits should be thoroughly reviewed.

SECTION 1.5 MAINTENANCE-OF-WAY CHANGES

1.5.1 GENERAL (1976)
a.

Installation of catenary or third rail will cause some changes in maintenance-of-way techniques. Thirdrail operation will require about 20% of the annual new ties to be longer than standard. In addition to
the increased material cost of the long tie, labor to unfasten and reattach the third-rail chair and
insulator must be included. Care must be exercised by tampers around impedance bonds, ground wires,
and third rails. The size of maintenance equipment is frequently restricted by a third-rail system.

b. Cranes and wrecking derrick booms should be equipped with insulated pantographs or shields when
working under catenary to avoid a grounding contact with the wire. Snow plows or spreaders operating
with wings will be restricted by catenary supports. All equipment should be grounded to provide a
positive electrical path for accidental contact with energized circuits.

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SECTION 1.6 INTANGIBLE BENEFITS AND LIABILITIES

1.6.1 GENERAL (1976)
a.

During an electrification study, many items will appear which have little monetary impact, but which
offer distinct benefits or liabilities for electric operation. Electrification has a positive impact on line-ofroad failures, pollution control, noise and exhaust emissions, performance with overload capability,
performance with superior wheel-slip systems, and the option to use different types of fuel. The catenary
can be tapped at remote locations to provide power for signals, power switches, switch heaters, lights,
and wayside buildings.

b. Negative aspects of electrification involve additional work when clearing wrecks, partial or total system
shutdown for large power failures, safety problems with the exposed electrical system, and possible
under-utilization of locomotives. Extra training will be required for those responsible for maintaining
both electric and diesel locomotives.

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