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CSXT charges Duke Energy 'reasonable' coal rates, STB says

Yesterday, the Surface Transportation Board ruled that CSX Transportation's rates charged to Duke Energy Corp. are not unreasonable according to the board's standard "stand-alone cost" test.

Duke Energy challenged CSXT's rates to move coal from Virginia, West Virginia and Kentucky mines to electrical generating facilities in North and South Carolina.

However, STB members question the level of CSXT's rate hikes and — if Duke Energy pursues the matter — would determine whether the railroad should be required to phase in the increases, according to a prepared statement.

"While we are pleased with the result of this case, at the same time, we have always been willing to negotiate private contracts that provide discounts in exchange for considerations, such as volume commitments," said Christopher Jenkins, CSXT vice president-coal and auto service group. "We regret that Duke chose to cancel its transportation contract with CSXT so that it could bring a costly, long case to the board."

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More News from 2/5/2004