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Article: Union Pacific to lose $100 million to resolve rate dispute over coal.(LEGAL LINES)
- Article from:
- U.S. Rail News
- Article date:
- August 12, 2009
CopyrightCOPYRIGHT 2009 National Institute of Business Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The Surface Transportation Board recently ordered Union Pacific Railroad to pay or sacrifice about $100 million in fees to a utility that serves Oklahoma and western Arkansas.
The $100 million in reparations and rate reductions must be paid over the next decade to Oklahoma Gas & Electric Co., under a settlement agreement over rates Union Pacific charged the utility to haul coal.
Oklahoma Gas & Electric accused the railroad of overcharging for coal carried from 12 Wyoming Powder River Basin mines to OG&E's Muskogee Station power plant in Fort Gibson, Okla. Union Pacific carries about six million tons of coal per year to the power plant.
The STB ...