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9/13/2004



Rail News: Rail Industry Trends

Shippers, BNSF to argue merits of re-opening STB rate case


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On Sept. 29, the Surface Transportation Board will hear arguments from Arizona Public Service Co., PacifiCorp and Burlington Northern Santa Fe officials regarding the shippers' petition to re-open a rate case the board decided in 1998. At the time, the STB prescribed rates through 2013 based on its stand-alone cost (SAC) analysis.

The companies are challenging BNSF's rates to move coal about 115 miles from Pittsburgh & Midway Coal Mining Co.'s mine near Gallup, N.M., to an electric generating plant near Joseph City, Ariz., owned by Arizona Public Service and PacifiCorp. The shippers claim their plan to close the New Mexico mine at the end of 2008 will change the STB's SAC analysis and not entitle BNSF to higher rates for a five-year period ending in 2008.


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