Possible Coal Supply Shortage Leads to Blackout Fears

U.S. power plants' coal stocks are at their lowest levels in three years, prompting concern among industry leaders of possible blackouts this summer, according to a recent Reuters article. A coal industry newsletter, CoalPeople.com, stated that supplies may be 10-20% lower now than they were at this point last year. In addition to an increase in the demand for electricity, other factors may have contributed to the depletion of domestic coal supplies. These include recent rail delivery problems, various utilities' cost-cutting efforts associated with deregulation, and an increase in the amount of coal purchased by California utilities in an attempt to ensure electric reliability this summer.

(Source: Reuters, 5/7/04)