Coal may be abundant. But, transportation is not. And therein lay the dilemma: Coal generators nationally are at the beck and call of rail operators to deliver their essential commodities. As such, transportation costs are rising while some power facilities are experiencing fuel shortages and subsequently higher costs.
At issue are fuel adjustments that are linked to the consumer price index. Utilities and others are not necessarily opposed to such rate increases to keep pace with climbing fuel prices. But, they are against what they say are arbitrary price hikes that are meant to increase profits. The rail companies deny such practices and say that they are unable to move coal fast enough because of limitations in the nation’s infrastructure.
What to do? Well, Congress is now considering a proposal to give the railway companies a 25-percent tax credit for investments in rail infrastructure. Fine, say utilities, so long as it is part of a broader legislative package to increase capacity – or, the number of lines to carry coal to their generators.
“Railroads impose fuel surcharges not simply to recover their unanticipated and uncontrollable increases in the cost of fuel, but rather in excess of their increased fuel costs in such a manner as to enhance their net revenues,” says Steve Sharp, principal engineer with the Arkansas Electric Cooperative Corp., at a hearing before the Surface Transportation Board.
Fuel surcharges are a relatively new phenomenon. In 2002, for example, they were small at 2 percent of freight charges. But, now, and specifically from coal supplies delivered from the Powder River Basin in Wyoming that is the nation’s largest source of
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So your point is what? That pointing out the facts of rail captivity makes such a “partial” view? Conversely, ignoring the issue of captivity would have then and only then made the article “impartial”?
Just because the rail industry press tries to sweep the captivity issue under the ballast doesn’t mean the subject cannot be discussed openly and impartially.
The current buzz words to enslave us all are global warming. Nukes emit no CO2, nor other gasses to give Algore reason to waste celluloid on another doomsday flick.
The rattle snakes and antelope in Wyoming need no longer have their turf violated in the quest for coal. Nuke plant fuel is BTU to pound light years ahead of coal. Trucks can economically transport nuke fuel.
Go nuke and cut the railroads out.
Too many regulations to go nuke?
So, excessive regulation knocks out nukes. This in turn leads to coal. Because some do not like the cost of moving coal, we “must be fair.” More regulation is necessary. When regulation bankrupts an industry, the government must take it over, remember Conrail.
Oh what a hell of a mess we make when we resort to regulate.