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Slurry lines see cheaper power; rails dispute claim

Journal Article · · Energy User News; (United States)
OSTI ID:7218965
Railroad spokesmen dispute the claim of pipeline companies and utilities that lower electricity rates are possible in the future now that they have been granted eminent domain in Texas and Oklahoma for slurry pipelines. The railroads claim that pipelines are not cheaper transportation if you compare the cost of new pipeline with those of a rehabilitated existing rail line. As common carriers, the railroads operate on unit-train rates, while new pipelines require 30-year coal delivery contracts. Pipelines would also divert from the trains the more profitable kinds of coal and this would raise rates for the coal customers not served by a pipeline. Estimates of savings from Texas utilities range from $2 to $14 billion. Water, a major pipeline hurdle, has led to exploratory drilling in Colorado. Locating markets may be an even larger problem until utility executives are persuaded to shift to slurry transport. Oklahoma utilities expect to begin to benefit from the new law in the 1980s, when construction plans can take advantage of new pipelines. (DCK)
OSTI ID:
7218965
Journal Information:
Energy User News; (United States), Journal Name: Energy User News; (United States) Vol. 2:19; ISSN EUSND
Country of Publication:
United States
Language:
English