Railroads Struggle to Deliver Coal to Utilities

[TomDiehl]

QUOTE: Originally posted by futuremodal

And the quote of note:

"But it {adaquate coal deliveries} will take time because of the enormous task of expanding an industry that until only a few years ago was abandoning track as its business dwindled."

So, because of Staggers, we're paying higher energy bills.

The part of that quote of MORE note: "was abandoning track as its business dwindled."

Imagine that. A business cutting back the physical plant because business is going down. What were they thinking?

[bobwilcox]

Most of the current problems were directly caused by the BNSF's failure to propely maintain track at a choke point on a stretch of joint line in the Powder River Basin. There deficient maintance program had a sign off from the UP.

In addition the Power Companies cut their safety stock inventores from one year to one month.

Shortly the BNSF will get the track fixed and the Utilities will learn to keep more inventory on hand.

[BaltACD]

QUOTE: Originally posted by mrsheep

I'm never ceased to be amazed by utilities that file multi-million dollar lawsuits againt railroads for charging "excessive rates", then turn around and sue the same railroads for not having the capital to add capacity whenever they decide to buy more Powder River Coal.

Meanwhile raising the rates of the product they sell with impunity.

Pot calling the kettle black[:(!]

[Anonymous]

I'm never ceased to be amazed by utilities that file multi-million dollar lawsuits againt railroads for charging "excessive rates", then turn around and sue the same railroads for not having the capital to add capacity whenever they decide to buy more Powder River Coal.

[tatans]

The price of natural gas is declining at a fast rate here in Canada today and is affecting the price of shares on the stock market, time to get out and invest in coal or something.

[CSSHEGEWISCH]

The last time I looked, my gas bill was going up because the price of natural gas has risen. In Illinois, the gas utility can charge a regulated rate for its service, which is constant, plus the unregulated cost of the natural gas, which is variable. Electric rates have remained constant by dint of regulation.

I don't think that Staggers has had much of an effect on natural gas prices.

[Anonymous]

And the quote of note:

"But it {adaquate coal deliveries} will take time because of the enormous task of expanding an industry that until only a few years ago was abandoning track as its business dwindled."

So, because of Staggers, we're paying higher energy bills.

[Anonymous]

An AP story in today's NY Times:

"WHEATLAND, Wyo. (AP) -- In the time it takes to microwave a frozen dinner, another 120 tons of coal is dumped from a railroad car at the Laramie River Station. It's a scene that can occur 200 times a day.

"To keep electricity flowing to some 1.6 million homes, the power plant burns up to 24,000 tons of coal every day. Operating 24/7, the plant's three generating units require a dependable, steady stream of coal.

"This past year, however, the stream of coal was anything but steady, even though the plant is only about 100 miles from the largest producing coal mines in the United States -- the Powder River Basin in northeast Wyoming, home to the nation's top 10 producing coal mines.

"As the power plant's stockpile of coal, sapped by sporadic shipments, dwindled to less than a week's supply, Basin Electric Power Cooperative had to make plans for scaling back the plant's operations and power output."

http://www.nytimes.com/aponline/business/AP-Railing-on-Coal.html?

Dave