How Railroads May Affect Your Electric Bill
By NREC
This year, electric co-ops across the country will engage in a classic David-versus-Goliath legislative battle, fighting for fairness in how we are treated by the nation’s railroads. Even as electric co-ops work hard to meet the growing demand for electricity, we find ourselves increasingly dependent on railroad monopolies, which are exempt from federal antitrust laws, to deliver coal to generate power.
The cost of shipping coal by rail today can exceed the cost of the coal itself, increasing rates for electric co-ops and their consumers. Without federal action, this situation will hinder the need to meet the nation’s growing appetite for affordable and dependable electricity. Electric co-ops, along with the rest of the electric utility industry, are not the only businesses affected by railroad monopolies. Grain farmers, steel manufacturers, wood and paper products industries, and chemical and fertilizer producers have had to deal with unfair pricing and unreliable service from the railroads for far too long.
What is being done, and what you can do as a co-op member
Consumers United for Rail Equity (CURE) was formed to focus on congressional policies affecting railroad competition. As a result, electric co-ops have their best opportunity in decades to push for congressional action aimed at forcing big railroads to offer better service and fair rates. Specifically, CURE is calling for a common rail carrier “obligation to serve” standard when it comes to delivering products, like coal, that are critical to the U.S. economy.
To succeed, all of our grassroots resources need to concentrate on this fight. As member-owners of Access Energy Cooperative, each of you can play an important role. Your co-op encourages you and your neighbors to get involved by contacting your U.S. legislators and asking them to reject the monopoly practices of America’s freight railroads.