Date: Thu, 20 Nov 1997 19:12:47 GMT Server: NCSA/1.5.2 Last-modified: Mon, 24 Feb 1997 22:16:22 GMT Content-type: text/html Content-length: 4003
Coal today is the hands-down choice for electricity generation, remaining the best choice for fuel-buyers searching for clean, low-cost, abundant domestic energy sources. Why has coal's market share grown at the expense of other fuels? Unlike oil, there are more than 250 years of domestic coal reserves, providing a reliable fuel source without compromising national security interests. Coal's proven reserve base far surpasses that of natural gas, which has only a decade of proven reserves... at often volatile prices. Coal is not as controversial as nuclear power, and renewables like wind, solar and fusion have yet to be practically applied in commercial quantities and competitive prices. New technologies have resulted in emissions from coal use that are dramatically lower in spite of the increasing use. The Clean Air Act will continue to impact utilities in the coming years. In 1995, and again in 2000, provisions of the act call for reductions in emissions. Utilities are complying by use of low-sulfur or compliance coal, or by purchasing emissions credits, generally from other utilities that have overcomplied. Utilities can also install scrubbers that reduce the level of emissions when higher-sulfur coals are burned. A wide variety of other clean coal technologies is being pursued by government/industry collaborations. Inexpensive, clean coal technology is becoming more a reality everyday. An even-more important driver for change in the electric utility market is deregulation. Deregulation is traditionally a dirty word for industries. It conjures up images of price wars, uncertainty and shrinking margins. That's why it might surprise you to know that we're excited about competing in an environment in which our customers are deregulated. In 1992, Congress passed an Energy Policy Act, which for the first time enabled states to begin breaking down territorial monopolies of electric utilities, leading to so called "deregulation." Since that time, the normally staid utility industry has been undergoing dramatic changes. Zeigler's optimism grows from a simple equation. Coal, year-in and year-out, has been the least-cost baseload fuel. Fuel is the largest cost component for utilities. And utilities will now have an incentive to compete on the basis of price. We believe coal's already favorable cost structure will continue to position us favorably vis a vis other fuels, protecting and perhaps increasing coal's sizable market share. |
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