Wednesday, September 15, 2010

CSX, Seminole settle their rate dispute

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CSX Transportation Inc. announced that it had settled a two-year-old rate dispute with Seminole Electric Cooperative Inc. It did not divulge the terms of the settlement.

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In a case brought against the railroad at the Surface Transportation Board in September 2008, Seminole challenged the reasonableness of CSXT rates for moving coal to the Seminole Generating Station near Palatka, Fla.

Seminole’s 2008 complaint specified that that CSXT served mine origins and origin groups in Kentucky, Illinois, Indiana, West Virginia, and Pennsylvania, plus coal transfer terminal facilities at Charleston, S.C. Claiming that CSXT had market dominance over this traffic, SCI asked that the STB prescribe “reasonable rates” pursuant to the board's standalone cost test.

Under an increasingly popular procedural option, the board and the disputants finally agreed that the latter should try to reach a settlement on their own.