5.7. ERMUSR 03-13-2013 - Laserfiche WebLink

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iffmarado Minnesota Municipal Utilities Association own municipal electric utilities. Both utilities that establish rail policy. Both amendments have been forced to give up their rail service – were successfully attached to the House farm bill they have resorted to trucking coal from Superior, reauthorization, led by the efforts of Rep. Tim Walz Wisconsin to their respective towns to fuel small (D-MN). coal plants rather than deal with prohibitive rail transport costs. The Virginia Department of Public Unfortunately, these amendments were not Utilities, for example, now pays upwards of$57 per included in the final farm bill due to an extension ton of coal, but only $16 is for the coal itself. The of current farm policy during last year's lame duck remaining $41 covers the costs of transportation. session. Hibbing Public Utilities now pays $15.30 per ton for coal but pays $48.48 per ton to have it delivered. There is likely to be more activity in the Senate during the 113th Congress on both STB reform and Congressional Action antitrust, in which both Minnesota's US Senators Two main pieces of legislation—an antitrust bill are slated to play major roles. Senator Amy and a measure aimed at reforming policy and Klobuchar, the new Chair of the Senate Judiciary procedure at the STB—have been consistently Subcommittee on Antitrust, Competition Policy and pursued by the rail shipper community for the last Consumer Rights, is expected soon to introduce an several Congresses. In the 112th, the Senate took antitrust bill strongly supported by the Consumers the lead. The Railroad Antitrust Enforcement Act United for Rail Equity (CURE). Senator Al Franken of 2011, authored by Senator Herb Kohl (D-WI), will soon introduce new STB reform legislation, 3liminated the exemptions from antitrust law that which will direct the STB to ensure competitive rail the railroads enjoy—including those under mergers service for all dependent rail shippers. and acquisitions, collective ratemaking, and private antitrust lawsuits. This legislation was passed out MMUA Position of the Senate Judiciary Committee 14-1 in 2011. Lack of competition in the rail industry, coupled with the lack of access to regulatory relief, has put A bipartisan package of regulatory reform utilities in the untenable position of dealing with provisions aimed at the STB, led by Sen. huge, unjustified cost increases in the shipment of Jay Rockefeller (D-WV) and Sen. Kay Bailey their most important fuel source, coal. Hutchison (R-TX), was ultimately added as part of the Senate's highway reauthorization bill, but MMUA supports enactment of legislation in the without the Kohl amendment. Eventually the 113th Congress that eliminates the exemptions from STB package was dropped from the highway bill antitrust law that the railroads enjoy—including that emerged from the conference committee those under mergers and acquisitions, collective last year. Minnesota Senators Klobuchar and ratemaking, and private antitrust lawsuits. Franken pushed hard for inclusion of both pieces of legislation in the Senate bill. MMUA also supports enactment of STB reform legislation that will direct the STB to ensure In addition, Sen. Klobuchar was successful in competitive rail service for all dependent rail including two amendments to the reauthorization shippers. of the Senate's farm bill. One amendment would require the Department of Agriculture to update Finally, MMUA urges members of the Minnesota their previous study on rural transportation issues, delegation to contact the STB to urge a fair decision including rail shipping; the other directs the head promptly on the May 2010 remand from the U.S. )f USDA to participate in certain STB proceedings Court of Appeals. 2013 Federal Position Statements/ 11