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12/16/2004



Rail News: Rail Industry Trends

BNSF, American Commercial Lines land long-term coal transportation contract



Burlington Northern Santa Fe and American Commercial Lines L.L.C. (ACL) recently obtained a long-term coal transportation contract from NRG Energy Inc. Beginning April 1, 2005, BNSF and ACL affiliates will move coal from the Powder River Basin to NRG's Big Cajun II generating station in New Roads, La.

Earlier this year, NRG leased 1,540 rail cars, some of which will be used by BNSF and ACL to serve Big Cajun II, a 1,700-megawatt plant owned and operated by NRG subsidiary Louisiana Generating.

"This agreement represents another important step in the implementation of our long-term coal strategy, which is predicated on managing risk through an integrated approach to the procurement, transportation and handling of our key fuel commodities," said NRG President and Chief Executive Officer David Crane in a prepared statement. "In addition, Powder River Basin coal transported under this agreement is naturally low in sulfur, [which is] environmentally responsible, low-cost and reliable."


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