PRB deliveries not a problem this summer: ReliabilityFirst

Washington (Platts)--22May2006

Although some Midwest electricity generators still report shortfalls in
shipments of Powder River Basin coal, ReliabilityFirst, a regional
organization of the North American Electric Reliability Council, paints a
decidedly upbeat picture for fuel deliveries this summer in a newly released
report.

"Deliveries of PRB coal are no longer limited due to last May's derailment and
subsequent track maintenance," ReliabilityFirst said in its 2006 Summer
Reliability Assessment. "Significant coal delivery problems are not expected
for RFC members this summer."

In terms of regional power production, ReliabilityFirst foresees sufficient
amounts to serve customers this summer. "Extreme summer weather during peak
demand conditions should not materially affect the ability to adequately
supply generation across the region," the group said.

Some electric generators, including Chicago-based Midwest Generation, have
indicated deliveries of PRB coal have not returned to normal following last
year's rail interruptions in the West. No generators in the region have warned
of serious PRB delivery problems this year, however.

While Paul Kure, ReliabilityFirst senior engineer, sees no major coal delivery
impediments this summer, he told Platts Friday that he has heard rumors that
some utilities in the region may be keeping much thinner stockpiles, perhaps
as low as 15 days.

Western railroads apparently are shipping as much PRB coal as they possibly
can to customers in the Midwest and East, Kure said.

For more information, take a trial to Platts Coal Trader at
http://www.coaltrader.platts.com.


 

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