HomeMy WebLinkAbout1983-028-02/01/1983-AUTHORIZING THE MAYOR TO TAKE CERTAIN ACTION ON BEHALF OF THE CITY COUNCIL RELATIVE TO BURLINGTON NO RESOLUTION 83- 28
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE MAYOR TO TAKE CERTAIN ACTION
ON BEHALF OF THE CITY COUNCIL RELATIVE TO
BURLINGTON NORTHERN RAILROAD'S PROPOSED RATE
TO PLATTE RIVER POWER AUTHORITY FOR THE
TRANSPORTING OF COAL TO RAWHIDE ONE
WHEREAS, the City of Fort Collins' representatives on the Board of
Directors of Platte River Power Authority ( "Platte River") have advised
City Council that the Burlington Northern Railroad ("Burlington") owns,
operates and controls the only railroad that can transport coal between (1)
the Powder River Basin in Wyoming, the source of coal for Platte River' s
Rawhide Energy Project Unit One, and ( ii ) the Rawhide Energy Project
("Rawhide One") , and
WHEREAS, Rawhide One is a major source of future electric power and
energy from which Platte River will supply the needs of the City of Fort
Collins and its affiliated municipalities as wholesale customers of Platte
River, and the rate Burlington charges to transport coal to Rawhide One
will indirectly, but significantly, impact the cost of electric energy
supplied to the City of Fort Collins for resale to its residents, busi-
nesses and institutions, and
WHEREAS, Platte River reports that Burlington represents its proposed
rate as not based upon its cost of rail service, but rather upon Platte
River' s demand for such rail service, and that the proposed rate therefore
reflects what Platte River would probably have to pay for the transport of
its coal to Rawhide One by other means, and
WHEREAS, the City of Fort Collins is further advised by Platte River
that the railroad' s bargaining position is only possible due to the Stag-
gers Act of 1980, which effectively deregulated the railroads without
continuing adequate protection for shippers of coal who have no other
alternative means of coal transportation
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that its Mayor be, and hereby is, authorized and directed
I To communicate, on behalf of this Council , its concern
for the position Burlington has taken in its proposed rate
to Platte River for the hauling of coal to Rawhide One,
2 To support Platte River in its efforts to negotiate a reason-
able rate for the transportation of coal to Rawhide,
3 To support Platte River in its efforts to communicate with
Colorado' s Congressional delegation to ( i) rectify and amend
the Staggers Act so as to protect captive shippers and ( ii)
take such additional action as is necessary to secure the
lowest reasonable rate for coal transportation to Rawhide,
and
4 To provide Platte River' s management with a copy of this
resolution for its use in support of the aforementioned
objectives
Passed and adopted at a regular meeting of the City Council held this
1st day of February, A D 1983
Mayor
ATTEST
City-Clerk
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