Dive Brief

• Coal generation has been dropping across a large swath of the central U.S. from around 80% a decade ago to about 65% this year, according to the Energy Information Administration.
• Coal use is supported by the availability of inexpensive Powder River Basin coal and the limited number of efficient gas-fired plants in the region, which spans the Midcontinent Independent System Operator and the Southwest Power Pool.

Dive Insight

Coal use in the central region has rebounded since last year when gas prices were especially low, but it is at significantly lower levels than during the early 2000s. Also, renewable energy use in the region is growing, which will lower overall fossil-fueled generation in the region.

Coal generators should be breathing easier as the “dark spread” – the difference between the price of power and the cost to run a coal plant – has expanded following several periods between late 2010 and mid-2012 when the spread was in negative territory.