Savings Will Be Passed On

Posted on Friday, February 20, 2009

It's not clear yet how it will translate for members of Sioux Valley Electric and other local cooperatives, but some expenses for generating cooperative Basin Electric will be reduced.

Basin, based in Bismarck and Denver based Western Fuels Association have won a rate case against BNSF Railway with the federal Surface Transportation Board.

The two companies filed the complaint in October 2004 after they said BNSF doubled the shipping rates for hauling coal to a Wyoming power plant owned by Basin.

Western Fuels provides coal to the plant. Basin Vice President for Communications Floyd Robb says he can't say how much at this point, but savings will be passed on.

The Surface Transportation Board has ordered BNSF to reimburse Basin and Western Fuels $100,000,000 for overcharges from 2004 through 2008.

Under the order BNSF also must lower its transportation rates by about 60% and keep them lowered through 2024.

The STB says the total amount of rate relief and damages is about $345,000,000.