TRANSPORTATION COSTS MAY DELAY UTILITY COAL USE

Escalating transportation costs from coal fields in the West to users in the South and Southwest are a continued problem. Some users are hinting at importing cheaper coal as transportation costs continue to rise. Federal goals are in conflict. The nation is committed by law to increase coal use to reduce dependency on oil and gas, but the nation is also committed by law to prop up its financially sagging railway industry. This is because the Energy Department, the Transportation Department, and the Interstate Commerce Commission are working at cross purposes. The Utilities are faced with escalating transportation cost increases with few viable alternatives, and the railroads are caught in a situation of having under-estimated the amount of traffic and the capital costs of keeping their service in condition to meet the increased usage. It is a "Catch-22" situation with the outcome yet to be resolved. The idea of importing coal seems ludicrous on the surface, but should the utilities be forced to pass cost increases along to the ultimate payer, the customer, maybe import competition could achieve an economic solution.

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  • Corporate Authors:

    Business Communications Company Incorporated

    P.O. Box 2070-C
    Stamford, CT  United States  06906

    Business Communications Company Incorporated

    471 Glenbrook Road
    Stamford, CT  United States  06906
  • Authors:
    • Miskell, J T
  • Publication Date: 1980

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Filing Info

  • Accession Number: 00331487
  • Record Type: Publication
  • Source Agency: Engineering Index
  • Files: TRIS
  • Created Date: Jun 12 1981 12:00AM