SURFACE TRANSPORTATION BOARD TO EXAMINE BNSF’S ABILITY TO ARTIFICIALLY RAISE RATES ON SHIPPERS

WASHINGTON, D.C.—In response to a petition regarding Berkshire Hathaway’s purchase of the Burlington Northern Santa Fe railroad, the Surface Transportation Board initiated a proceeding Wednesday to determine whether BNSF has the right to inflate its asset base for regulatory purposes by a portion of the “premium” Berkshire paid to purchase all the stock of the railroad and take it private. The proposed artificial inflation of its rate base could result in higher rates for customers served by the BNSF.

 “It is unfair and ridiculous to expect rail shippers to foot the bill for Berkshire Hathaway and the BNSF,” said Glenn English, Chairman of Consumers United for Rail Equity, a coalition of rail dependent shippers.  “This accounting maneuver could raise shipping rates even higher and is harmful to our country’s coal, agriculture and manufacturing industries as well as a detriment to U.S. jobs and export growth.”

In May, the Western Coal Traffic League (WCTL) petitioned the STB to determine if the BNSF proposal to inflate its asset base should be allowed. 

In addition to strong comments filed by WCTL and other rail customer groups, such as CURE, eleven United States Senators filed letters with the STB earlier this year opposing the proposed action by the BNSF.

For more information about CURE, please visit www.railcure.org.

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