Electric Power Sector Continues Coal to Natural Gas Fuel Switching Trend

Lower natural gas prices have continued to incent fuel switching from coal to natural gas by the electric power sector. In addition to economics, fuel switching to natural gas also is attractive because of anticipated costs associated with compliance with new environmental regulations.  According to Valerie Wood, President of Energy Solutions, Inc., “Since 2010, 112 coal plants either have been or soon will be retired. ” She went on to explain, “In fact, an analyst from Doyle Trading Consultants recently projected that 42,000 megawatts or 18 percent of the existing coal-fired fleet will be vulnerable to retirement by 2020, and of that, 90 percent of the retirements are expected to occur by 2015.” 

Some have been comparing coal-fired power plants to a car that has long since outlived its prime, noting that there comes a time when the cost of repairs exceeds what it would cost to buy a new one; the modern auto will be more efficient and come with the latest environmental technologies ensure compliance with upcoming Environmental Protection Agency (EPA) regulations.

Additional information about natural gas price trends, storage inventories, demand issues, production levels, rig counts, and much more can be found in the Monthly Edition of The Advisor.  Take a FREE, no-obligation 60-day trial to The Advisor and receive the most recent Weekly Edition, as well as the Monthly Edition for June, which contains additional insight into bearish, bullish and neutral factors that affect pricing within the Natural Gas Industry.   Learn more by visiting www.energysolutionsinc.com.  

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About Energy Solutions, Inc.

Formed in 1996, Energy Solutions, Inc. is independently owned. With more than 50 years of experience in the natural gas industry, our team focuses on natural gas prices and in helping businesses improve their internal processes for the purchase of natural gas.