Utilities Moving Back to Coal
The news of coal's demise in the utility industry was premature. Natural gas was only a queen for a day; after the dust settles, coal will remain king. The coup d'état against natural gas' reign came from the marketplace -- the price of natural gas is becoming too darned high. Utilities run on market economics, and their primary drivers have been fuel prices.
It only makes sense that as natural gas prices drift upward, power producers will begin to switch their fuels from natural gas back to coal. It's all about production costs, and it doesn't matter if the utility is regulated or deregulated. Two business factors dominate the numbers behind power plants' production costs: plant efficiency and costs for fuel....614 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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