Lawmakers Press Key Federal Energy Commission to Act on Rail Car Shortage, Protect Minnesota’s Consumers and Businesses

WASHINGTON, DC – U.S Senators Amy Klobuchar and Al Franken, U.S. Representative Rick Nolan, and Governor Mark Dayton today urged a key federal energy commission to the Federal Energy Regulatory Commission (FERC) to protect Minnesota consumers from reduced utility reliability by forcing BNSF Railway Company to fix coal-delivery issues. Across Minnesota, electric utilities are watching their stockpiles of coal fall to dangerously low levels. In a letter, the group called on Chairman Cheryl LaFleur to bring together utility and railroad representatives to discuss coal delivery service issues.

“Utilities in our state are restricting the operation of coal-fired plants for the sole reason of conserving existing coal stockpiles – stockpiles that have grown dangerously low due to BNSF’s ongoing delivery problems,” the group wrote. “BNSF’s service failures are driving up the cost of electricity and pose significant threats to electric system reliability.  Given the Federal Energy Regulatory Commission’s (FERC) mission, we request that the FERC act to protect utility consumers in Minnesota and the other impacted states from the adverse consequences of BNSF’s service failures.”

The full text of the letter from Senators Klobuchar and Franken, Representative Nolan, and Governor Mark Dayton is below:

Dear Chairman LaFleur:

We write to express our strong concerns regarding BNSF Railway Company’s (BNSF) failure to provide adequate rail service to electric utilities in Minnesota.

Utilities in our state are restricting the operation of coal-fired plants for the sole reason of conserving existing coal stockpiles – stockpiles that have grown dangerously low due to BNSF’s ongoing delivery problems.  In one case, a utility has recently shuttered four power plant units in direct response to reduced coal deliveries, forcing the utility to buy replacement power to make up for plant shutdowns.  In situations such as these, it is electric customers who ultimately have to bear the cost of BNSF’s failure to perform.  The rail service problem has persisted, in varying degrees of severity, for more than a year.  With winter fast approaching, Minnesota utilities cannot tolerate watching fuel stockpiles fall to under one week — as they did last winter.  Minnesota utilities are not alone in facing these rail service problems.  We are aware of utilities in other states that BNSF directly serves that are also facing coal shortages caused by BNSF’s poor performance.  These utilities find themselves in the same situation as Minnesota’s utilities.

BNSF’s service failures are driving up the cost of electricity and pose significant threats to electric system reliability.  Given the Federal Energy Regulatory Commission’s (FERC) mission, we request that the FERC act to protect utility consumers in Minnesota and the other impacted states from the adverse consequences of BNSF’s service failures.  As an immediate first step, the FERC could convene a meeting to hear from utility and railroad representatives to discuss railroad coal-delivery matters and their impact on electric markets and reliability.

We urge you to fully exercise your authorities to protect electric consumers in Minnesota and other affected states.

Sincerely,

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