(The following appeared on the Progressive Railroading website on September 1, 2009.)
Yesterday, Seminole Electric Cooperative Inc. announced it filed documents with the Surface Transportation Board (STB) showing that since Jan. 1, CSX Transportation has “severely overcharged” the Tampa-based co-op, its owner-members and members’ consumers for coal transportation, Seminole officials said in a prepared statement. CSXT moves coal from Illinois Basin and Appalachian mines to a Seminole generating station near Palatka, Fla.
In October 2008, Seminole filed a rate complaint with the STB. However, higher rates later went into effect on Jan. 1 over Seminole’s objection, according to the co-op.
CSXT’s rates from Illinois Basin and Appalachian mines are 68 percent to 101 percent higher than the maximum levels allowed under STB guidelines, Seminole claims, adding that rates on certain shipments from Charleston, S.C., are more than 240 percent higher than the “lawful maximum.”
“Our evidence shows that for transportation from one of our principal coal sources, for example, CSXT is charging more than $40 per ton for a service that should cost our consumers less than $20.50 per ton,” said Seminole Chief Executive Officer Tim Woodbury. “This is the consequence of CSXT’s monopoly over coal transportation to our station and highlights why we need effective regulatory relief from the STB.”
CSXT “declines to comment at this time” on Seminole’s claims, says spokesman Gary Sease.