Zeigler believes electricity use will continue to grow. Coal use will
continue to maintain or grow market share within the electricity fuel mix.
- Growth in the U. S. economy is increasing the demand for electricity, which
translates into higher coal consumption. Coal is the fuel source for 56 percent
of the electricity generated in this country. The Department of Energy predicts
the United States will need to add 150,000 to 200,000 megawatts of new
electrical generating capacity over the next 15 years to sustain an estimated
2.5 percent annual GNP growth. Because coal has proven to be reliable in both
cost and supply, it is estimated that a significant portion of our future
electricity needs will continue to be coal-powered.
- The gradual deregulation of the utility industry will lead our customers
away from territorial monopolies into a more price-sensitive market. Coal
remains the least expensive fuel for the generation of electricity.
- Tougher sulfur emission standards being phased in as part of the Clean Air
Act are contributing to the increasing demand for low-sulfur coal. Phase I of
the 1990 Clean Air Act Amendments requires certain electric utilities reduce
sulfur emissions from the coal they burn to no more than 2.5 pounds of sulfur
dioxide per million Btu combusted. Phase II goes into effect in January 2000
and mandates a further reduction by requiring most utilities to reduce their
sulfur emissions to no more than 1.2 pounds of sulfur dioxide per million Btu
combusted. Utilities have the choice of either burning low-sulfur coal,
installing scrubbers to remove sulfur emissions, or purchasing emissions credits
from other utilities.
|