N.D.: Regulators decide coal rate case |
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Tue, 11 Sep 2007 14:51
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BISMARCK, N.D. (AP) - Federal regulators have ruled in favor of BNSF Railway in a case brought by Basin Electric Power Cooperative over coal hauling rates.The Bismarck-based electric co-op claimed the railroad is a monopoly that charges too much to provide substandard service hauling coal to a Wyoming power plant.The Surface Transportation Board said Monday that Basin 'failed to establish that the challenged rates are unreasonably high.''We are deeply discouraged and frustrated,' said Mike Eggl, a Basin Electric senior vice president.Said BNSF spokesman Gus Melonas: 'We are satisfied with the ruling and we believe it is fair and correct.'Basin has been at odds with BNSF over rail service since a 20-year contract to haul 8 million tons of coal annually from the Powder River Basin to the Laramie River Station power plant expired in 2004. The two sides were unable to negotiate a contract, and BNSF then set a rate at twice the expired contract rate, or roughly $6 per ton, to haul the coal about 200 miles to the plant, board documents say.Basin, which filed the complaint against BNSF along with the Western Fuels Association, claims its costs for shipping coal to the Laramie River Station plant have doubled, and says that will cost utility customers in nine states an additional $1 billion over the next 20 years.The plant produces power for about 2 million consumers in North Dakota, South Dakota, Colorado, Iowa, Minnesota, Montana, Nebraska, New Mexico and Wyoming.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Expansion of N.D. coal mine approved 