Coal price hikes boost electric rates, more increases coming

[DogPoundPup]

Source: A/P

Consumers struggling with high gas prices, rising food costs and falling home values have something new to worry about: Sharply rising electricity rates due to a surge in coal prices over the past year.

There is an abundance of coal in the United States, but like many other commodities its price is increasingly dependent on events elsewhere in the world. Snowstorms this winter cut coal production in China and heavy rain flooded mines in Australia — the world's largest coal exporter. Meanwhile, demand for coal to generate electricity and make steel is rising almost everywhere, especially in fast-growing China and India.

That has increased the world's appetite for American coal, helping to push up the price of the fuel utilities burn to drive the steam turbines that generate half of the country's electricity. U.S. coal exports jumped 19.2 percent last year, according to the Energy Department, and are expected to rise another 15 percent this year.

"As more of the world develops and uses more energy, and supply tries to keep up with demand, we're going to have these pinch points," said Carol Pfeiffer, director of fuels for the U.S. for utility giant E.On AG.



Read more: http://news.yahoo.com/s/ap/20080428/ap_on_bi_ge/electricity_rates

[angstlessk]

1. heavy rains in Australia??? thought they were in the midst of a 10 year drought??

is there another Australia I am not aware of??

[depakid]

4. Australia is a big continent

with diverse climates. It just snowed in the mountains near Orange, NSW -and it's been raining (and flooding) all summer -and into the fall (your spring) along the east coast.

Coupled with major floods last June (winter) in the Hunter Valley and Newcastle (the world's largest coal port) production and transportation in the region has declined well below "normal," driving prices up to record levels.

Whether that's a "good" thing or not is tough to figure. Higher prices mean that it'll be that much more difficult to restrain (much less phase out) the filthy coal industry, but in some respects it benefits Australians, as higher prices both enrich their coffers and make investments in alternative power generation (like solar thermal) that much more attractive.

[angstlessk]

5. thanks for that info...I recon only the news of Australia's drought made headlines here

I had no idea that there were such climate differences. I do know that ya'll Chritmas at the beach, unlike the USofA. But I had no idea of the diversity of climate thanks for the edumacation!!! :hi:

[liberal N proud]

2. You don't want that bunch of bu$h cronies to be left out

Do you?

After all they need a share of the great theft of America

[Hulk]

3. What a fine mess this administration and the corporate leeches have left this country in...

...but hey, they can be seen with their little flag pins, so it's all ok.

What a farce. The coal companies should be clamped down on hard, and they KNOW they are going to get their asses handed to them when the Democrats start running this ass-backwards country. It's going to take 20 years to undo all the bullshit and corruption this administration AND all the administrations back to senile ronnie - including the Clintons - have done to screw over our country.

[magellan]

6. Um, if we have an abundance of coal in the US

...then why are OUR prices going up? Why isn't the coal being used HERE instead of being shipped overseas, creating higher prices for us?

PROFITS.

And so I don't get jumped on, I oppose the use of coal because it's a pollutant and mining it damages the environment. But our gov't hasn't left us a choice but to continue burning coal at many US power stations for the time being.