Electric Utilities Are Captive Shippers
Electric utilities are experiencing higher and higher rates to ship coal to their coal-fired generation plants. This is because in most areas of the country, shippers have only one or at most two railroads from which to seek shipping services. As a result of rising rates, a number of utilities are experiencing declining coal stock piles, necessitating the burning of high-priced natural gas or electricity purchases and in turn raising the costs to consumers.
NRECA is supporting legislation that has as its three primary objectives: (1) to maintain consistent and efficient rail transportation service for shippers, including the timely provision of rail cars requested by shippers; (2) to promote effective competition among rail carriers at origins and destinations; and (3) to maintain reasonable rates in the absence of effective competition.
In March 2007, Sens. Herb Kohl (D-WI), Norm Coleman (R-MN), Russ Feingold, (D-WI), David Vitter (R-LA) and John Rockefeller (D-WV) introduced the Railroad Antitrust Enforcement Act (S. 772) to restore antitrust laws over railroad monopolies. Under this bill, rail customers, the U.S. Attorney General and state attorneys general will be able to litigate anti-competitive rail actions under the nation's antitrust laws. NRECA supports this bill.
To learn more about NRECA’s position affecting Rail Competition, please select the links below.
News:
House Judiciary Committee passes bipartisan Railroad Antitrust Enforcement Act of 2007 (H.R. 1650).
Legislation seeks to eliminate antitrust exemptions enjoyed by freight railroads since the 1900s. more >>
Railroad Reform Effort Shows Momentum
March 24, 2008 - Shippers fan out across Capitol Hill to press issues of competition, reliability. more >>
Letter to the Editor of Roll Call: Fair and Accurate
October 8, 2007 - NRECA CEO Glenn English responds to recent Roll Call article “The Railroading of America” which was published September 26, 2007.
more >>
Dairyland Electric President Testifies Before Senate Judiciary Panel
October 3, 2007 - Bill Bergh, President & CEO of Dairyland Power Cooperative, testifies in support of S.722 The Railroad Antitrust Enforcement Act and notes the impact railroad's antitrust exemptions have had on Wisc.
more >>
Glenn English, CEO of NRECA, and Ron Harper, CEO of Basin Electric Power Cooperative, Urge House Committee to Pass Surface Transportation Board (STB) Reform Legislation
September 25, 2007 - "The STB has abdicated its statutory responsibility and made it impossible for Basin Electric to do business in a reasonable way," Harper told the House Transportation and Infrastructure Committee. more >>
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Senate Judiciary Committee Reports Out Bill to Repeal Antitrust Exemption for Railroads
September 20, 2007 - The Senate Judiciary Committee today passed Railroad Antitrust Enforcement Act of 2007 (S. 772) by voice vote. This bipartisan legislation would remove the railroad industry’s antitrust exemptions so that antitrust law fully covers railroads as it does other industries. more >>
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GAO: Freight Rail Rates Spike in 2005
August 30, 2007 - Government Accountability Office report shows a spike in rail costs in 2005, with railroads shifting more costs to shippers. Rail customers increasingly are required to own and maintain freight rail cars and other railroad equipment, greatly increasing the costs of doing business with railroads. more >>
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