Consumers Energy Wins Major Railroad Rate Case

Consumers Energy Company (“Consumers”), a Michigan utility, won its railroad rate case against CSX Transportation, Inc. (“CSXT”) at the Surface Transportation Board (“STB”).  In its decision issued on January 11, 2018, the STB found that CSXT possesses market dominance over Consumers’ coal traffic from Chicago, Illinois to Consumers’ J.H. Campbell Generating Station near West Olive, Michigan, and that the challenged rates are unreasonably high.  The STB prescribed maximum lawful rates for the challenged traffic through 2024, and ordered CSXT to reimburse Consumers for any overpayments received in excess of these prescribed levels. 

The rate relief granted by the STB will result in millions of dollars of annual savings for Consumers’ ratepayers.  This is the first win by a captive shipper challenging rail rates under the STB’s Stand-Alone Cost test since the Arizona Electric Power Cooperative, Inc. case in 2011.  Slover & Loftus LLP also represents AEPCO.   

Questions on this decision or on railroad rate litigation generally may be directed to Kelvin J. Dowd or any other Slover & Loftus LLP attorney.