Coal news and updates

Rising gas prices in the Midwest Independent System Operator territory are giving coal-fired power generation an edge over gas recently in a trend that's likely to accelerate into the winter months.

 

In August, generation share for coal in MISO has climbed to an estimated 45% – up just one-half percentage point from July, but sharply higher compared to the fuel's 40% market share in June.

Over the same 11-week period, gas generation in MISO has declined steadily. In August, gas accounts for just over 29% of total generation, down from 31.5% in July and nearly 33% in June, ISO data shows.

 

The inversely correlated market trends for coal and gas come as prices for the latter continue to rise.

 

At regional benchmark Chicago city-gates, cash prices have averaged $3.90/MMBtu in August, up about 30 cents from the prior month and nearly 80 cents since June. Compared to summer 2020, the rise in gas prices is even more stark. June 1 to date, the Chicago cash market has averaged $3.48/MMBtu – more than double last summer's average of just $1.67/MMBtu, S&P Global Platts data shows.

 

Source : https://www.spglobal.com/platts/en