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Thursday, December 30, 2010
Ameren Files Complaint Against Union Pacific for Anticompetitive Practices
In a complaint filed Nov. 22, to the Surface Transportation Board, a federal regulatory agency that resolves railroad service disputes, Ameren asserts that Union Pacific is preventing the Missouri Central Railroad Co. from serving the plant, which burns more than 10 million tons of coal a year.
Missouri Central is owned by Ameren Development Co., a subsidiary of the Ameren Corp., the parent company of the utility. Ameren wants to use the railroad to bring in coal from Illinois, a potentially lower-cost alternative to mines in Wyoming's Powder River Basin that currently provide the bulk of the coal the utility uses.
The dispute revolves around a contested provision in a complex 1999 sale of a railroad line and the rights to use it, involving three railroads and Ameren Missouri, which financed the purchase. In the exchange, Missouri Central Railroad — using money from Ameren — purchased a majority interest in the Rock Island line railroad between St. Louis and Kansas City. It purchased the line from GRC Holdings, which had purchased it from Union Pacific, all in the same set of connected deals. Also included were "trackage rights" for Missouri Central to use several other sections of track in the region.. Click Here for more info.
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