PPL Montana LLC filed a petition with the Surface Transportation Board for reconsideration of the STB’s decision denying relief from excessively high rail rates. PPL Montana has argued that the Burlington Northern and Santa Fe Railway’s rates on coal shipments to the Corette generating station, near Billings, Mont., are unlawful.
The STB’s earlier decision denied relief based on a new variation on its stand-alone cost test. This variation, which considers line segments in isolation, was not applied in prior cases and is inconsistent with applicable legal, economic and policy principles, according to PPL Montana.
The petition for reconsideration also argues that, even under the STB’s new test, BNSF rail rates are unlawful and should be reduced. A decision by the STB is expected early in 2003.
PPL Montana, a subsidiary of PPL Corporation (NYSE: PPL), has offices in Butte, Billings and Helena. PPL Montana operates the Colstrip and Corette generating plants and 11 hydroelectric facilities within the state.