STB to hear Florida coal case

STB to hear Florida coal case    The U.S. Surface Transportation Board said it will hear oral arguments on June 30 in a rate case in which Seminole Electric is challenging rates CSX Transportation charges for coal transportation to its generating station near Palatka, Fla.
   The parties will argue whether CSX has “market dominance” over the traffic involved, meaning an absence of effective competition. STB said both sides agree the rates CSX charges exceed 180 percent of the variable costs of providing rail service, one of two conditions the STB sets for establishing market dominance.
   The oral argument will focus on the second condition, whether Seminole Electric has a viable alternative to rail delivery, in this case the delivery of coal by barge from the Port of Jacksonville, the STB said.
   Last August Seminole said CSX has been severely overcharging it for moving coal from the Illinois Basin and Appalachia to the Palatka power plant, with rates 68 percent to 101 percent higher than the maximum levels under STB's guidelines. It said CSX rates on certain shipments from Charleston, S.C., are more than 240 percent higher than the lawful maximum.