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DM&E Financing revisited.
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[quote user="Murphy Siding"] <P>[quote user="futuremodal"]Contrast CREATE with the DM&E project - the nation can do without CREATE, even if it means finding an alternative farther south, while the DM&E project is by consensus deemed vital to national energy security. Ergo, there should be no federal funds for CREATE, and significant federal funds for DM&E's PRB project.[/quote]</P> <P> Using your logic, the nation could do without CREATE <EM>and</EM> DM&E, even if it means finding an alternative farther south-down the existing Orin line. I'm not sure about the concensus deeming DM&E vital to national energy security.(?) The push behind DM&E is to haul coal to utilities cheaper than UP and BNSF do now. This will positively effect only those utility customers who will be paying for cheaper coal. There is also the distinct possibility that all rail customers will be negetively impacted.</P> <P> To be truthful, one wonders if $6B was used to improve the existing lines out of the PRB,everyone (except DM&E of course) would come out ahead. Heck, maybe it would be more cost effective to use the $6B to subsidize freight to captive customers?[:P]</P> <P>[/quote]</P> <P>You still don't get it, do you? Why is it so hard to understand the difference between adding capacity to buttress a monopolistic situation, or adding new competitive capacity to alleviate a monopolistic situation? If you cannot grasp the vital importance of this difference, then we are all wasting our time with this thread.</P> <P>From <EM>Logistics Today</EM>:</P> <P><A href="http://www.logisticstoday.com/displayStory.asp?nID=8275">http://www.logisticstoday.com/displayStory.asp?nID=8275</A></P> <P>Quothe John Ficker, president of the National Industrial Transportation League, regarding the NITL's support for the DM&E project - "The movement of coal from Wyoming’s Powder River Basin is important not just to utilities, but also to shippers in general; since a significant portion of the <STRONG>nation’s</STRONG> electrical supply—upon which <STRONG>all industry</STRONG> is dependent—is powered by Powder River Basin coal.” </P> <P>Quite obviously, the DM&E project has ramifications for national energy security beyond it's regional impacts.</P> <P>Conversely, I don't see where CREATE will have a similar positive impact for the nation.</P>
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