Arizona utility takes on big railroads, wins $63M – The Associated Press

A small power cooperative in Arizona has won a major victory over two big railroads it accused of gouging it on coal-shipping rates. BNSF Railway and Union Pacific...

A small power cooperative in Arizona has won a major victory over two big railroads it accused of gouging it on coal-shipping rates.

BNSF Railway and Union Pacific Railroad will have to issue refunds or lower rates by about $63 million through 2018 to Arizona Electric Power Cooperative Inc. under the Nov. 23 ruling by the federal Surface Transportation Board, which resolves railroad rate disputes.

The in-house lawyer for the nonprofit utility, known as AEPCO, said the battle against the railroads was a rare win for a customer trying to prove it was being gouged.

“It is a real victory for a captive shipper to obtain this kind of relief,” attorney Skip Whitley told The Associated Press on Saturday.

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