May 2014, Vol. 241, No. 5


Challenges Of Converging U.S. Gas, Power Markets

Many utilities are expanding portfolios of power generation assets, and as older coal-fired plants retire, utilities are deciding what must replace them. While some older plants are candidates for retrofitting to natural gas, others will be forced to shut down. The Energy Information Administration (EIA) reports that the federal government’s most recent forecasts project about 49 gigawatts of coal-fired generation capacity could be retired within the next eight years – facilities driven from the market by a combination of increased Environmental Protection Agency (EPA) rulemaking and cheaper natural gas. Since 2010, and with the recent dramatic drop in natural gas

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