(The Associated Press circulated the following article on April 25.)
LITTLE ROCK, Ark. — Union Pacific Railroad, targeted by a lawsuit filed by Entergy Arkansas, says it did all it could to keep coal moving to Entergy and other customers last year despite bad weather and damaged tracks, even to the point of turning down new business as the company tried to catch up with delayed coal shipments.
The company responded Monday through a spokesman to claims made in the suit filed April 12 by Entergy, though a response has not yet been filed in Pulaski County Circuit Court where the suit was lodged.
Entergy Arkansas, the state’s largest provider of electricity and consumer of coal, claimed in its suit that Union Pacific schemed to hold back deliveries of Wyoming coal to Arkansas power plants in an effort to make more money.
Railroad spokesman Mark Davis denied that accusation.
“We worked hard to safely move as much … coal as possible,” said. “We attempted to meet our obligations. In fact, we embargoed new business to try to keep up.”
Davis said the railroad, based at Omaha, Neb., lost at least $100 million that it could have otherwise made had it moved all of its available trains.
Entergy Arkansas, part of the multi-state system of New Orleans-based Entergy Corp., said in its suit that it suffered “tens of millions of dollars” in damages when coal shipments declined up to 20 percent last year. The company said the coal shortage forced it to reduce operations at two large coal-fired power plants in Arkansas, the White Bluff plant near Redfield, and the Newark plant in Independence County.
The electric utility said the production cutbacks at its two major coal-fired plants forced it to increase electricity purchases on the open market, at greater cost.
Union Pacific says bad conditions _ including a snowstorm and two derailments last May _ warped rail lines near the region where the coal shipments originate. Union Pacific ships more than 80 percent of the coal used at the White Bluff and Newark power plants.
Entergy officials had no immediate comment Monday, according to spokesman James Thompson.
The utility claimed in its suit that Union Pacific was negligent for failure to spot and promptly fix its deteriorating rail lines.
The coal dispute is a factor in a state Public Service Commission investigation of a recent electricity rate increase by Entergy, and another increase planned for April that was suspended.