New EPA Regulations Not Driving Coal Demand
From Seeking Alpha
In this article, select 2011 early release Energy Information Administration (EIA-860) survey data collected about domestic retired, existing and proposed new power generators (including generators planned for retirement) are analyzed in the context of assessing the course of domestic coal stock prices. Coal-fired power generation comprises the major use of domestically mined thermal coal in the United States.
The EIA has published a short summary on their site about the jump in planned retirement of coal-fired generators beginning this year, and mapped their location and capacity. Here the importance of generator age in retirement planning, and the distribution of generator age is examined in greater detail to understand the population of coal-fired generators and overall capacity which is less cost-effective to operate under new environmental regulations. Other possible drivers for coal stock prices are also discussed.