We Energies filed a federal lawsuit against Union Pacific Corp. accusing the railroad of overcharging the utility by millions of dollars for transporting coal, much of it from Wyoming, to its plants in Wisconsin and Michigan.

The utility said the overcharges have contributed to higher electric prices for Wisconsin consumers -- a claim disputed by rail advocates.

The filing on Tuesday reflects dissatisfaction among some Wisconsin utilities and other businesses with the rail industry, which they claim has consolidated into a near-monopoly. The U.S. House railroad subcommittee was scheduled to hold a hearing Wednesday in Washington on the nation's railway capacity.

"There's really only one railroad for most businesses. That monopoly-type authority has allowed the railroad industry over the last two years to really reduce the level of service they provide," said Pat Schillinger, president of the Wisconsin Paper Council. The council is a member of Badger-Cure, a coalition of utilities and forest-product companies that formed to counter railroad pricing policies.

Railroad advocates insist utilities and other businesses are looking for a scapegoat for their own rising prices.

"Who do they complain about? They're going to complain about the railroad. There's no sense in that at all," said Tom White, a spokesman for the Association of American Railroads.

According to the lawsuit, filed in U.S. District Court in Milwaukee, We Energies had a contract with Union Pacific that called for the railroad to ship coal from Wyoming and Colorado to the utility's power plants in Michigan and southeastern Wisconsin.

But Union Pacific, the nation's largest railroad, failed to deliver nearly 700,000 tons of coal from 2003 to 2005, according to the lawsuit.

We Energies sent a letter to the Omaha, Neb.-based company in 2004 telling the railroad its delivery shortfalls forced the utility to spend $2.6 million in 2003 alone to find and transport coal from elsewhere.

The railroad claimed its performance was affected because its agreements to move iron ore to Utah fell through and it would have to apply higher rates for coal, according to the lawsuit.

The complaint challenges the railroad's rate decision and seeks about $23 million in reimbursement, We Energies spokesman Barry McNulty said. He blamed the railroad for helping to drive up electric rates.

"This is part of the drivers that have led to increased costs for Wisconsin consumers," McNulty said.

Union Pacific spokesman Mark Davis said he had not seen the lawsuit and declined to comment.

The Wisconsin Public Service Commission, which regulates energy prices in the state, launched a probe last month into rising rail rates for coal transportation and delivery reliability. According to the PSC, the rail industry has consolidated so much since the 1980s that only four major railroads now provide most of the nation's rail transportation.

Most of the coal Wisconsin relies on to produce electricity comes from Montana, Wyoming and the Appalachians, according to the PSC.

White said the price of coal has more than doubled in recent years. According to the Wisconsin PSC, a ton of coal that went for about $6 in 2003 costs as much as $20 per ton today.

"Their real problem is not the railroads. The real problem is the cost of energy has gone up," White said.

Chuck Baker, executive director of the National Railroad Construction and Maintenance Association, which represents railroad contractors, said the allegations of monopoly-style prices are exaggerated and designed to create cheaper rates.

Railroads are forced to put much of their profits back into maintaining tracks and cars to provide better service, Baker said.