
STB Orders Rate Relief for Oklahoma Utility Plant
WASHINGTON — The Surface Transportation Board issued a decision today granting an estimated $100 million in reparations and rate reductions over the next decade from Union Pacific Railroad to Oklahoma Gas & Electric Company (OG&E). The utility serves more than 750,000 customers in Oklahoma and western Arkansas. UP has hauled roughly 6 million tons of coal per year from Wyoming’s southern Powder River Basin to OG&E’s Muskogee Station power plant in Fort Gibson, Okla. under contracts between the parties. But after the latest contract expired on Dec. 31, 2008, UP and OG&E could not agree on a new contractual rate.