High coal price may cost you

Soaring costs paid by utilities to generate power could mean higher monthly electric bills

An upward trend in coal prices could mean higher electricity bills for consumers.

The cash price for coal that utilities burn to generate electricity exceeded $101 per ton this week at a West Virginia mine served by Norfolk Southern Railway.


The price was reported yesterday in Platts, a trade publisher for the energy industry. The price adds an exclamation point to a trend that saw the average price of high-quality, Central Appalachian coal climb from less than $50 per ton on the spot, or cash, market in October to roughly $85 per ton at the end of February.

High-heat, low-sulfur coal from Central Appalachian mines is popular with utilities because it burns cleaner and helps them comply with federal clean-air rules. Five years ago, the same coal was selling for around $30 per ton.

With half the state’s and half the nation’s electricity produced from coal, the price trend could mean higher electricity prices for Virginians. Utilities generally are allowed to pass along the increased cost of fuel for their power plants.

Richmond Times-Dispatch