While reduced coal deliveries from the Powder River Basin (PRB) shouldn’t threaten electric reliability in the U.S., in order to meet the energy resource shortfall, power entities in various parts of the country are taking several measures including replacing affected generation with more expensive gas-fired units.

All of the North American Electric Reliability Council (NERC) regions expect their members to meet projected electricity demand through the end of the year, despite reduced coal deliveries from the PRB, the regions recently told NERC.

On July 21, NERC CEO Michehl Gent sent a letter to the 10 NERC regions requesting an evaluation of potential reliability impacts of reduced PRB coal deliveries to power plant operators.

In the replies, which were due July 29, all ten regions indicated minimal or no impact in their members’ ability to meet expected electricity demand, both through Sept. 30 and Dec. 31. They said members experiencing reduced PRB coal deliveries would make up the shortfall by increasing the use of non-PRB coal, reducing off-peak burns of PBR coal, using coal mined on-site, replacing affected generation with other units fueled by natural gas, or purchased power.

The regions said any impact that their members might experience is likely to be either in the form of higher costs of replacement power or increased costs of purchasing natural gas for gas-fired generating units.

NERC’s Reliability Assessment Subcommittee will conduct a further evaluation during its 2005/2006 winter assessment, which is due to be published in November.

Earlier this year, two separate railroad train derailments occurred in the PRB in northeast Wyoming, causing damage to heavily-used joint railroad lines that supply coal to various generation facilities in the U.S. Coal deliveries from the PRB are expected to remain limited until the damaged lines are repaired. Repair work could extend into next spring before it is completed.

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