UPS was: Re: DPU trains (was Re: Thunder on Blue Ridge)

NW Mailing List nw-mailing-list at nwhs.org
Wed Jan 26 10:28:56 EST 2011










My employer has alliances with the certain utilities that are based on a
ontractual process using metrics to determine the percentage of profit (down to
nly having total cost covered) for each contracts based on performance metrics;
chedule, quality, safety, cost, and other performance metrics. Such contracts
rive good performance and cooperation between suppliers and customers to create
in-win results. We work under this kind of arrangement at the customers
uclear facility I am assigned to.
Ed Painter - Narrows, VA living in Russellville, AR
Until the Staggers Act, rail rates were regulated. Any adjustment
to rates had to be approved by a regulatory commission and rates were
open to public inspection. It took a library of tariffs and experienced
rate clerks to come up with THE correct rate. Then in 1980, rates became
merely a contract between shipper and consignee. And the improved system
did OK for about 12 years -- until John W. Snow (CSX) convinced the head
of Dominion that the railroad wasn't making a profit in its 10-year
contract. The contract was terminated, but none of this would have come
to light had not one of Dominion's traffic people "spilled the beans". He
was discharged. It was indeed a source of laughter in NS's Coal Traffic
Department. Rail rates are part of the "fuel factor" in the calculation
of utility rates. Virginia's SCC advises they now review the contract.
Harry Bundy

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