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Union Pacific to Provide $30 million
to Kansas City Utility.
The Surface Transportation Board (STB) will order Union Pacific Railroad to provide $30 million in rate reductions and reparations to Kansas City Power & Light. The utility filed the case with the STB in October of 2005, challenging UP’s rates to transport coal from Wyoming’s Powder River Basin to its generating station in Ladue, MO. The STB ruled that UP’s rates exceeded 180 percent of the variable costs of providing the service. As a result, the railroad must establish and maintain rates that do not exceed 180 percent through 2015. In addition, reparations, plus interest, must be paid for funds previously collected on rates beyond 180 percent of variable costs.
Source: Progressive Railroading
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