STB Rules Against Coal Rate Cases

In each case, electric utility shippers challenged rates charged by the Burlington Northern-Santa Fe (BNSF) to haul coal from the Powder River Basin in Wyoming to their power plants. In one case, AEB Texas North Company challenged a rate of approximately $18 per ton to haul coal 1,200 miles. In the other, Western Fuels Association challenged a rate of $6 per ton to haul coal 200 miles.
In both instances, the STB said the challenged rates did not meet the "stand alone cost" rate test for an unreasonable rate.

Some changes in the standalone cost (SAC) methodology were instituted after the cases were filed, and the STB is allowing the shippers to revise portions of their cases in view of the changes.