(The Associated Press circulated the following article by James MacPherson on March 8.)
BISMARCK, N.D. — Basin Electric Power Cooperative is accusing BNSF Railway of “great plains robbery” and says its utility customers are the ultimate victims.
The Fort Worth, Texas-based railroad denies the claim. “Our rates are reasonable,” BNSF spokesman Patrick Hiatte said in a statement.
The Bismarck-based electric co-op says the railroad is a monopoly that charges too much to provide substandard service hauling coal to a power plant near Wheatland, Wyo.
Basin furthered the squabble in a cartoon in one of its publications, showing an armed robber running from a bank building of “freight customers” to a train labeled “BN$F.” “Obviously, we feel pretty passionate about this issue,” said Mike Eggl, Basin Electric vice president of government relations.
Hiatte said BNSF is addressing Basin’s “false allegations” with the federal Surface Transportation Board, which is reviewing the railroad’s rates.
Basin has been at odds with BNSF over rail service since a 20-year contract to ship coal to a Wyoming power plant expired in 2004.
Basin claims that its costs for shipping coal to its Laramie River Station have doubled, and that will cost utility customers in nine states an additional $1 billion over the next 20 years.
The plant produces power for about 2 million consumers in North Dakota, South Dakota, Colorado, Iowa, Minnesota, Montana, Nebraska, New Mexico and Wyoming.
This week, Basin said an unrelated coal car shortage could cause a cut in power production at the plant.
Eggl said the 1,650 megawatt, three-unit Laramie River Station requires about 1 1/2 coal trains per day, which BNSF is supposed to have delivered.
“The deliveries have been very sporadic,” Eggl said.
Basin said it has less than a week’s supply of coal stockpiled as a backup in case of an interruption in rail deliveries. “We are very concerned that we will have to go into curtailment if the stockpiles continue receding,” Eggl said.
Hiatte said the railroad added an extra train for the power plant in February to supplement Basin’s three trains.
Basin officials said it’s not enough. Ron Harper, Basin’s chief executive, said the Laramie River Station is a “captive” customer to the railroad, the only one serving the plant.
Basin and Western Fuels Association Inc., a Denver-based nonprofit that provides coal to the Wyoming plant, filed a complaint with the Surface Transportation Board in October 2004, after BNSF doubled the shipping rates.
Basin and Western Fuels want the panel to reject the rate increase and require the railroad to make a reimbursement – plus interest – for the additional costs. The case is pending.