WASHINGTON — A Michigan electric utility company has praised the improvement in BNSF Railway’s coal train service this year, as well as the railroad’s “accurate and timely communication” during service problems last year.
Consumers Energy Co., based in Jackson, Mich., told the Surface Transportation Board this week that coal train cycle times have improved by more than 20% this year and that BNSF has been more receptive to adding trains when needed, which has allowed the utility to restore its coal stockpiles.
Last year was a different story due to crew shortages.
“As a customer of the BNSF Railway for approximately 40 years, we have seen the ebb and flow of rail service challenges, but 2022 presented some of the most impactful challenges on our business. High natural gas prices led to near-record levels of coal demand and the inability of the rail network to meet this demand resulted in the curtailment of coal generation, which ultimately increased the cost of electricity to Michigan’s electric customers,” Timothy Sparks, Consumers’ vice president, electric supply, told the STB.
But Sparks credits BNSF for working closely with the utility even though it could not receive as many Powder River Basin coal trains as it would have liked.
“By communicating an expectation of when trains could be added, we were able to develop a coal conservation strategy that allowed us to manage our coal inventory and mitigate the risk of running out of fuel,” Sparks wrote. “BNSF’s interest and awareness of our inventory levels helped them focus resources where they were most needed. Additionally, BNSF advocated on our behalf with connecting carriers to maximize throughput and minimize interchange time.”
Consumers Energy is the second BNSF coal customer to praise the railroad in a letter to federal regulators. The letters come amid a common carrier complaint and federal lawsuit filed by Navajo Transitional Energy Co., which claims BNSF has been unwilling to move more of its coal from Montana to export in British Columbia.
Consumers Energy operates the Karn Generating Plant near Essexville, which will be retired this year, and the Campbell Generating Plant in West Olive, which is scheduled to be shut down in 2025.
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