Dive Brief:
- Utilities reliant on Western coal say their stockpiles are reaching dangerously low levels and have asked federal regulators to help push BNSF Railway Co. to improve its service, the Columbia Daily Tribune reports.
- The Western Coal Traffic League asked the Surface Transportation Board to force BNSF to speed deliveries, using fines if necessary, in order to ensure power reliability.
- Fuel supply has been a hot topic leading up to this winter, as rail deliveries have been slow while generators tried to boost coal stocks. In some instances generators burned a more expensive fuel rather than use coal on hand.
Dive Insight:
Coal shortages are a serious concern as winter temperatures begin in earnest. Powder River Basin coal has had to compete for rail cars with a strong grain crop and Bakken oil, while generators wary of another Polar Vortex look to boost their stocks. And now the Western Coal Traffic League, an association of consumers of coal from western mines, say slow deliveries by BNSF are threatening electric reliability.
"Regrettably, no immediate relief is in sight, and winter is coming," the group said in its filing to the Surface Transportation Board. "The board must now take immediate action to ensure that the supply of electricity to the communities that WCTL’s members serve is secure, reliable and cost-effective during the winter months when electricity usage often soars."
The group asked regulators to require BNSF to submit a coal-specific service recovery plan, which the board would then review, approve or revise, and enforce. The group has asked regulators to consider penalties to ensure compliance.
"Most BNSF-served WCTL members find their stockpiles are well below target levels," the group said. "Moreover, BNSF has not transported millions of tons of coal that WCTL members have requested."
