U.S. Supreme Court denies BNSF Railway appeal
Although one legal aspect of the case is resolved, the Missouri Basin Power Project remains engaged in keeping rail rates reasonable.
Basin Electric Power Cooperative
- May 20, 2011
A U.S. Supreme Court order has upheld rate relief awarded to Western Fuels and the six participants of the Missouri Basin Power Project, which includes Basin Electric. On May 16, the court denied a petition by BNSF Railway seeking review of a court of appeals ruling which affirmed a Surface Transportation Board decision. The decision granted substantial rate relief in a rate case brought by Basin Electric and Western Fuels challenging railroad rate hikes.
The Missouri Basin Power Project, which owns the Laramie River Station, has been involved with this case for nearly seven years. The Surface Transportation Board determined in 2009 that BNSF's rates were unreasonable and ruled BNSF must provide reparations and rate reductions in the amount of about $345 million. Since then, BNSF has tried to overturn that decision in federal court. On appeal, the Surface Transportation Board has argued, along with Basin Electric and Western Fuels, and the reviewing court has agreed, that the decision was decided correctly.
Chris VandeVenter, Basin Electric legislative representative, said one technical rate calculation issue has been returned to the Surface Transportation Board on the grounds that the agency had not specifically explained its rationale in its decision. “On appeal, BNSF Railway claimed the decision should be overturned because the Surface Transportation Board took too long in reaching a decision,” VandeVenter said. “The courts have fully rejected consideration of that argument.”
VandeVenter said even though this legal aspect of the case is over, the Missouri Basin Power Project remains engaged. “The Surface Transportation Board is still conducting a review of the technical cost matter, as requested by the U.S. Court of Appeals in 2010. They have received briefings on the issue from Basin Electric, Western Fuels, and BNSF Railway, and we expect a decision by the Surface Transportation Board later this year.”
Basin Electric has also taken on a new challenge regarding the railroads to protect the membership from other rail surcharges. Last week, representatives of Western Fuels and the Missouri Basin Power Project sent a letter to Warren Buffett, asking that his company, Berkshire Hathaway, not increase shipping rates because it paid a premium for BNSF. Berkshire Hathaway bought BNSF in 2010.
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