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Surface Transportation Board Dismisses Part of Complaint Against Union Pacific

The Surface Transportation Board has agreed to dismiss part of Arizona Electric Power Cooperative, Inc.’s (AEPCO) coal rate complaint against Union Pacific Railroad (UP). On March 24, AEPCO notified the board that it had settled a lawsuit with UP and ask
April 25, 2011

The Surface Transportation Board has agreed to dismiss part of Arizona Electric Power Cooperative, Inc.’s (AEPCO) coal rate complaint against Union Pacific Railroad (UP). On March 24, AEPCO notified the board that it had settled a lawsuit with UP and asked the board to dismiss the sub-docket portion of the rate case. The sub-docket concerned a dispute between AEPCO and UP over whether the parties entered into a valid contract for UP to transport Colorado and Powder River Basin coal. UP sent AEPCO a proposal and AEPCO agreed to it, but its agreement came after the stated deadline. UP claimed the agreement constituted a contract, but Arizona argued the acceptance occurred after the proposal was no longer valid. UP filed suit in Arizona federal court. Despite the partial dismissal, AEPCO's complaint against UP and BNSF Railway Co. over the two-line tariff rates for moving coal from New Mexico to the Apache station is still pending. The utility has asked the board to prescribe a reasonable rate for transporting the coal. See the full text of the partial dismissal here.

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