Mississippi power company charges NS
Written by William C. Vantuono, Editor-in-ChiefHattiesburg, Miss.-based South Mississippi Electric Power Association (SMEPA) says it is suing Norfolk Southern, claiming NS holds a monopoly on coal delivery to the association’s Plant Morrow plan tin Purvis, Miss., that lead to inflated costs.
SMEPA claims Norfolk Southern has used that control over coal delivery since 1978 to negotiate price increases of between 60% and 80% with each contract renewal. It has sued NS for $34 million.
SMEPA said Monday NS’s proposed rate increase beginning this year will be four times higher than the amount the railroad charged under contract in 2003. SMEPA is claiming a hardship because it is a nonprofit company. SMEPA also has filed a complaint with the Surface Transportation Board over the matter.
