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From the TRAINS Newswire 04/26/06 (major talking points smilied): MADISON, Wis. - We Energies, the marketing name for Wisconsin Electric Power Co., filed a federal lawsuit against Union Pacific Railroad on Tuesday, accusing the carrier of overcharging the utility by millions of dollars for transporting coal to its plants in Wisconsin and Michigan, according to an Associated Press story in the Duluth (Minn.) News Tribune. The utility said the overcharges have contributed to higher electric prices for Wisconsin consumers, a claim disputed by rail advocates. The filing reflects dissatisfaction among some Wisconsin utilities and other businesses with the rail industry, which they claim has consolidated into a near-monopoly. The U.S. House railroad subcommittee was scheduled to hold a hearing Wednesday in Washington on the nation's railway capacity.[tup] "There's really only one railroad for most businesses. That monopoly-type authority has allowed the railroad industry over the last two years to really reduce the level of service they provide," said Pat Schillinger, president of the Wisconsin Paper Council. The council is a member of Badger-Cure, a coalition of utilities and forest-product companies that formed to counter railroad pricing policies. Railroad advocates insist utilities and other businesses are looking for a scapegoat for their own rising prices. "Who do they complain about? They're going to complain about the railroad. There's no sense in that at all," said Tom White, a spokesman for the Association of American Railroads.[%-)] According to the lawsuit, filed in U.S. District Court in Milwaukee, We Energies had a contract with UP that called for the railroad to ship coal from Wyoming and Colorado to the utility's power plants in Michigan and southeastern Wisconsin. But UP failed to deliver nearly 700,000 tons of coal from 2003 to 2005, according to the lawsuit. We Energies sent a letter to the company in 2004 telling the railroad its delivery shortfalls forced the utility to spend $2.6 million in 2003 alone to find and transport coal from elsewhere. The railroad claimed its performance was affected because its agreements to move iron ore to Utah fell through and it would have to apply higher rates for coal, according to the lawsuit.[#oops] The complaint challenges the railroad's rate decision and seeks about $23 million in reimbursement, We Energies spokesman Barry McNulty said. He blamed the railroad for helping to drive up electric rates. Union Pacific spokesman Mark Davis said he had not seen the lawsuit and declined to comment. The Wisconsin Public Service Commission, which regulates energy prices in the state, launched a probe last month into rising rail rates for coal transportation and delivery reliability. Most of the coal Wisconsin relies on to produce electricity comes from Montana, Wyoming, and the Appalachians, according to the PSC.
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