and Market Power
Coal, railroads, and electric utilities have been closely intertwined for most of the 20th century. Today, coal fuels over 56 percent of the nation's electricity. Coal and rail transportation together cost electric utilities over $23 billion annually.
Over the past 15 years, a combination of events (em including productivity gains, technological innovations, and consolidation (em has resulted in a very competitive fuel and transportation market. For most of this period, coal and transportation rates have declined steadily. The electric industry has been the beneficiary.
Though both the electric and coal industries have undergone significant consolidation in recent years, they are still businesses that involve thousands of participants. The rail industry, on the other hand, is becoming ever more highly concentrated. Today, only a handful of companies control the rails.