True. But a utility cannot make that decision except on the basis of cost. Cost of service is the bottom line with all state utility commission except to the extent that the commission, or state law, imposes additional requirements that force the utility to spend more. But, if the utility itself wanted to switch from coal to some other fuel that would raise the cost of electricity to the consumer, the commission would tell it 'no you can't raise the price to the consumer, your stockholders will have to pay the cost differential.'
Stoaty said:
if all utilities decide that they don't want to purchase coal-fired electricity, that plant will be out of business...
I can't back this up with math, but I suspect that natural gas is better from a climate standpoint than coal, for two reasons:
- a steam cycle coal plant is roughly just as efficient whether burning coal or natural gas, but a gas-fired combined cycle plant can be much more efficient than a steam plant.
- coal is essentially carbon, the combustion products are essentially CO2. Natural gas is essentially methane, CH4. The combustion products are some CO2 and a lot of water.
On the other hand, methane is a much worse greenhouse gas than CO2, so any natural gas that escapes between the well and being burned reduces the benefit.
Stoaty said:
or will have to convert to natural gas, which probably isn't any better from a climate standpoint,
Agreed, although modern coal plants and those older coal plants that have been retrofitted with modern cleanup systems are pretty clean.
Stoaty said:
but is a lot better in terms of other pollutants like mercury.
Exactly. But to the extent that new environmental regulations make it increasingly expensive to retrofit older plants, making them uneconomic to operate, the time frame can be speeded up. The question is, how much are regulators willing to force up the price of electricity by driving up the cost of producing it? There is conflict here - the utility regulators want to keep the price to the consumer down, environmental regulators want to clean up the air and reduce global warming despite the cost.
Stoaty said:
Of course it is going to take decades to make this change. So, will it make an immediate difference? Of course not. Will it influence the building of new power plants and utilization of current ones? To some degree, but likely slowly over time.