Presentation is loading. Please wait.

Presentation is loading. Please wait.

April 23, 2013 NATIONAL COAL CONFERENCE Chairman Robert F. Powelson Pennsylvania Public Utility Commission.

Similar presentations


Presentation on theme: "April 23, 2013 NATIONAL COAL CONFERENCE Chairman Robert F. Powelson Pennsylvania Public Utility Commission."— Presentation transcript:

1 April 23, 2013 NATIONAL COAL CONFERENCE Chairman Robert F. Powelson Pennsylvania Public Utility Commission

2 PA PUBLIC UTILITY COMMISSION  Created in 1937  5 commissioners  500 employees  $65 million budget Regulates around 8,000 utilities in the following sectors: Electricity Natural Gas Water Telecommunications Transportation

3 THE NEW ENERGY REALITY  World energy consumption predicted to grow by 53% from 2008 to 2035  Fossil fuels will continue to supply much of the energy used worldwide  Renewable share of total energy use is predicted to increase from 10% in 2008 to 14% in 2035  There are 1.6 billion people without electricity worldwide Source: EIA’ s International Energy Outlook 2011

4 U.S. ELECTRICITY CONSUMPTION EXPECTED TO GROW 30% BY 2035 Projected KWH (Billions) Source: Energy Information Administration 4

5 U.S. COAL PRODUCTION The U.S. holds the worlds largest estimated recoverable reserves of coal In 2011, approximately 72% of coal production originated in 5 states: PA WY WV KY TX

6  PA is the 4 th largest coal producing state in the U.S.  Coal production is vital to PA’s economy  In 2011, PA’s coal industry: Contributed $3.2 billion in economic output Supplied well-paying jobs for 41,500 Pennsylvania residents Provided more than $750 million in federal, state, and local personal income and payroll tax revenue PENNSYLVANIA + COAL

7  Over 90% of U.S. coal consumption is in the electric power sector Coal-fired generation still holds the largest share among all sources of electricity In March 2012, coal's share of total U.S. generation was 34%  However, coal’s use has declined since 2007 due to: Slow growth in electricity demand Strong price competition with natural gas Increased used of renewables COAL + ELECTRICITY

8 2013 PJM GENERATION BY FUEL TYPE Source: PJM Environmental Information Services

9 2013 PENNSYLVANIA GENERATION BY FUEL TYPE Sources: U.S. Energy Information Administration

10 THE FUTURE OF ELECTRIC GENERATION

11  Coal is the most important commodity carried by America’s railroads Coal accounts for 43 percent of all tonnage shipped Coal generates over 24 percent of all gross rail revenues  The business of coal, rail, and power generation are inextricably linked 70 percent of all call delivered to U.S. power plants is delivered by rail Coal industry accounts for 1 in 5 railroad jobs COAL AND RAIL

12 FUTURE OF COAL Unknown impact of environmental regulations creates tremendous uncertainty for the coal industry.

13 Dominion Resources Inc.: Completed construction of new coal plant in 2012. One of the last new coal plants? Brandon Shores, Crane & Wagner Generating Stations: Scrubbed for billions, but sold for only $400 million REAL WORLD EXAMPLES PJM Plant Retirements: Almost 9,000 MW did not clear in PJM’s Capacity Auction for 2014-2015 FUTURE OF COAL Homer City Generating Station: Edison & GE Capital planning to invest $700 million in scrubbing this plant

14  With the rising demand for electricity, we need to rely on all sources of generation, from wind to coal  A diverse mix, or portfolio, approach is the answer  For coal plants to compete in the future, clean coal technology is a must  Coal will be a major player in the future of electric generation CONCLUSION

15 THANK YOU


Download ppt "April 23, 2013 NATIONAL COAL CONFERENCE Chairman Robert F. Powelson Pennsylvania Public Utility Commission."

Similar presentations


Ads by Google