Seeking Alpha

Power plants are renegotiating coal contracts and finding other ways to reduce coal deliveries...

Power plants are renegotiating coal contracts and finding other ways to reduce coal deliveries as cheap natural gas weakens demand for their longtime staple fuel. In Q4, coal consumption by power generators fell 18.8% Q/Q and 9.4% Y/Y; as the price of natural gas has been cut in half from a year ago, the shift in power production surely has accelerated since.
Comments (3)
  • This is old news, BTU talked about it on their conference call.
    1 May 2012, 11:29 AM Reply Like
  • BTU is still up and will go to $44 regardless.
    1 May 2012, 01:03 PM Reply Like
  • Change from coal to Nat Gas isn't just the flip of a switch. It will take years to convert and then nat gas prices will go up naturally. I'm long ARLP and will hold until I see a real reason to move. Of course with 80 degree days in Mich in March 2012 the use of coal for heat is down. On the other hand, if the east coast sees summer temps like the south, coal will be there to cool things off. Emotions may move the market but they shouldn't move your portfolio nearly as much. Good Luck investors
    1 May 2012, 08:02 PM Reply Like
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