UTILITIES LOOK SKEPTICALLY AT RAIL DEREGULATION

Concern about the Staggers Rail Act of 1980, which deregulates rates, prompted the Tennessee Valley Authority to insert a protective clause allowing it to cancel coal contracts if rail rates go too high. Railroads will be allowed to charge an increasing amount, up to 175% of variable costs by 1984. Legislators were hoping to pass a slurry-pipeline bill to provide the competition that will protect consumers. Pipelines would carry less than 20% of the freight, but they would provide an efficiency and cost comparison. The Interstate Commerce Commission (ICC) has not been able to protect utilities, especially those relying on coal from the Powder River Basin. The new law could relieve railroads of enough regulatory cost burdens and promote competitive lines to hold down rates.

  • Corporate Authors:

    McGraw-Hill, Incorporated

    330 West 42nd Street
    New York, NY  United States  10036
  • Publication Date: 1981-1

Media Info

  • Pagination: p. 27-29
  • Serial:
    • Electrical World
    • Volume: 195
    • Issue Number: 1
    • Publisher: McGraw-Hill, Incorporated

Subject/Index Terms

Filing Info

  • Accession Number: 00335285
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jul 9 1981 12:00AM