[Federal Register Volume 59, Number 60 (Tuesday, March 29, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-7335]
[[Page Unknown]]
[Federal Register: March 29, 1994]
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INTERSTATE COMMERCE COMMISSION
[Finance Docket No. 32393]
Southern Electric Railroad Company; Acquisition and Operation
Exemption; Southern Electric Generating Company
On March 7, 1994, Southern Electric Railroad Company (SERC), filed
a notice of exemption under 49 CFR 1180.2(d)(3) and 49 CFR 1180.4(g),
to acquire from Southern Electric Generating Company (SEGCO),1 all
of SEGCO's rights and obligations to provide common carrier service
over the approximately 7.5-mile rail line between CSX Transportation
Inc.'s (CSXT) main line near Westover, AL, and the Ernest C. Gaston
Steam Electric Generating Plant near Wilsonville, in Shelby County, AL
(Gaston Line).2 SERC maintains that it will obtain an exclusive,
permanent easement to conduct rail operations over and maintenance of
the assets of SEGCO, but not the physical assets themselves, which
SEGCO states it wishes to retain.3
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\1\SERC and SEGCO were granted exemptions to construct lines of
railroad in Southern Electric Railroad Company--Construction
Exemption--Jefferson County, AL, Finance Docket No. 31972 (ICC
served Mar. 17, 1992) (Jefferson County), Southern Electric Railroad
Company--Construction Exemption--Effingham County, GA, Finance
Docket No. 32195 (ICC served Jan. 12, 1993) (Effingham County), and
Southern Electric Generating Co.--Petition for Exemption--
Construction of a Rail Line in Shelby County, AL, Finance Docket No.
31498 (ICC served Sept. 19, 1989). SERC and SEGCO are, therefore,
carriers subject to Commission jurisdiction.
\2\SERC states that none of its lines connects with the Gaston
Line. The parties previously proposed to accomplish the same result
proposed here by having SEGCO convey to SERC all of its rights,
title, and interest in the Gaston Line, followed by SERC's conveying
the property back to SEGCO, subject to SEGCO's retention of an
exclusive easement interest for purposes of rail carrier operations
and rail line maintenance. A notice of exemption was filed and
published, Southern Electric Railroad Company--Corporate Family
Transaction Exemption--Southern Electric Generating Company, Finance
Docket No. 32281 (ICC served May 5, 1993), but the transaction was
never consummated because of tax and other regulatory reasons.
\3\SERC cites South Orient Railroad Company, Ltd.--Acquisition
and Operation Exemption--Line of The Atchison, Topeka and Santa Fe
Railway Company, Finance Docket No. 31971 (ICC served Sept. 2,
1992), in which the Commission determined that it did not have
jurisdiction over the transfer of the fixed assets of rail line, but
that it did have jurisdiction over the transfer of the common
carrier obligation. The Commission determined there that a notice of
exemption should be published to provide for the transfer of the
operations.
SERC asserts that it is constructing other lines, but that it
will not itself operate any of those lines, each of which will be
operated as a separate entity through operation agreements with
nonaffiliated carriers. See Jefferson County and Effingham County.
SERC asserts that the present transaction does not involve a Class I
carrier, that none of its lines connects with the Gaston Line, and
that its purchase of SEGCO's common carrier obligation and
accompanying permanent operating easement are not part of a series
of anticipated transactions that would connect the rail lines with
each other. SERC maintains that the transaction, therefore, would
also qualify for an exemption under 49 CFR 1180.2(d)(2).
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SERC asserts that CSXT currently provides all service over the
Gaston Line and will continue to provide service over the line under
the agreement. SERC asserts further that it will substitute itself for
SEGCO in the operating agreement with CSXT and in other similar
agreements.4 The parties intend to consummate the proposed
transaction on or before December 31, 1994.
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\4\SERC does not believe that it needs to obtain Commission
authority to substitute itself for SEGCO in the operating agreement
between SERC and SEGCO which was granted in CSX Transportation,
Inc.--Operating Exemption--Line of Southern Electric Generating
Company, Finance Docket No. 31500 (ICC served Aug. 1, 1989). SERC
indicates, however, that if the Commission does not agree, it will
promptly file for such authority.
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SERC, Alabama Power Company (APC),5 and Georgia Power Company
(GPC) are subsidiaries of The Southern Company (Southern), a public
utility holding company. APC and GPC each own 50% of the stock of
SEGCO.
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\5\APC is the only current shipper on the Gaston Line.
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Because the parties are members of the same corporate family, and
the transactions will not result in adverse changes in service levels,
significant operational changes, or a change in the competitive balance
with carriers operating outside the corporate family, the transaction
qualifies for the class exemption at 49 CFR 1180.2(d)(3).
The purpose of the transaction is to allow Southern to consolidate
all of its rail functions within one subsidiary, SERC. Southern wishes
to enhance administrative efficiencies for all rail lines serving its
operating electric utility affiliates by centralizing in SERC the
administration of operations for all of the rail lines Southern
controls.
To ensure that all employees who may be affected by the
transactions are given no less than the minimum protection under 49
U.S.C. 10505(g)(2) and 11347, the labor conditions set forth in New
York Dock Ry.--Control--Brooklyn Eastern Dist., 360 I.C.C. 60 (1979)
are imposed.
Petitions to revoke the exemption under 49 U.S.C. 10505(d) may be
filed at any time. The filing of a petition to revoke will not stay the
transaction. Pleadings must be filed with the Commission and served on:
William A. Mullins, 601 Pennsylvania Ave., NW., suite 640, North
Building, Washington, DC 20004.
Decided: March 23, 1994.
By the Commission, David M. Konschnik, Director, Office of
Proceedings.
Sidney L. Strickland Jr.,
Secretary.
[FR Doc. 94-7335 Filed 3-28-94; 8:45 am]
BILLING CODE 7035-01-P
