Peabody

IEEFA Research

Why Navajo Generating Station Is No Longer Commercially Viable

Why Navajo Generating Station Is No Longer Commercially Viable

The Institute for Energy Economics and Financial Analysis (IEEFA) has done extensive research into the difficult circumstances facing Navajo Generation Station. Key findings: Declining energy market prices and rising production costs have made power produced by the plant more expensive than competing sources. Market trends are not likely to change, leaving the plant’s financial viability […]

August 16, 2017 Read More →
IEEFA Report: ‘End of an Era’ for Navajo Generating Station; Vast Subsidies Would Be Required to Keep Aging Plant Online; Retirement Seen as Most Viable Option

IEEFA Report: ‘End of an Era’ for Navajo Generating Station; Vast Subsidies Would Be Required to Keep Aging Plant Online; Retirement Seen as Most Viable Option

‘No Longer Competitive’ With Rise of Natural Gas and Renewables; Staying Open Through 2022 Would Require a $740-Million-to-$1-Billion Subsidy; Through 2030 Would Require a $1.4 to $2.4 Billion Subsidy

May 10, 2017  (IEEFA.org) – The Institute for Energy Economics and Financial Analysis today published a report detailing how the failing coal-fired Navajo Generating Station in northern Arizona will require hundreds of millions of dollars in subsidies to remain online for any length of time. The report—“End of an Era: Navajo Generating Station Is No […]

IEEFA Research Brief: Coal in Decline, Blow by Blow

IEEFA Research Brief: Coal in Decline, Blow by Blow

Plant Closings and the Likely Effects on Specific Companies and Mines

We’ve published a research brief today that presents an expansive snapshot of a moving target: the decline in U.S. coal-fired generation nationally. As global energy markets continue to undergo rapid transformation, change has swept the U.S. as well. Our brief—“U.S. Coal Phase-out, Blow by Blow: Plant Closings and the Likely Corresponding Effect on Specific Companies […]

April 21, 2017 Read More →
IEEFA U.S. Coal Outlook 2017: Short-Term Gains Muted by Prevailing Weaknesses in Fundamentals

IEEFA U.S. Coal Outlook 2017: Short-Term Gains Muted by Prevailing Weaknesses in Fundamentals

Production Declining by as Much as 40 Million Tons; Prices Failing to Benefit Shareholders or Stimulate New Investment; Anemic Exports; Little or No Gain From Regulatory Relief; Increasingly Dim Employment Prospects

We’re out this morning with our annual outlook for U.S. coal markets, and the picture isn’t pretty. We see the potential for some short-lived strength in the current uptick for coal producers but the title of our assessment sums up the larger view: “Short-Term Gains Will Be Muted by Prevailing Weaknesses in Fundamentals.” You can […]

As Texas Coal-Fired Power Plants Close, Powder River Basin Mines Are Losing Their Largest Customers

Trends Will Force Closures and Complicate Efforts by Alpha Natural Resources, Arch Coal and Peabody Energy to Work Their Way Out of Bankruptcy

CLEVELAND, Aug. 3, 2016 (IEEFA.org) — The Institute for Energy Economics and Financial Analysis today published a report detailing how Powder River Basin coal producers are losing their largest customers as Texas power producers turn increasingly to other sources of energy. The report, “Texas’ Outsize Role in the Decline of the Powder River Basin Coal […]

August 2, 2016 Read More →
The Federal Government’s Coal-Leasing Program Is Broken: Here’s How to Fix It

The Federal Government’s Coal-Leasing Program Is Broken: Here’s How to Fix It

Appoint a Price-Setting Commission; Ban Exports; Cancel Some Leases; Eliminate Self-Bonding; Mandate Set-Asides for Mine Clean-up and Miner Pensions; Require Twice-a-Year Audits; Assume Smaller Markets

It’s time for the U.S. to modernize how it manages its publicly owned coal reserves. That’s the essence of comments we’ve filed today with the Department of the Interior as it begins a review of its federal coal-leasing program in the Powder River Basin, a program that has been mismanaged for years at taxpayer expense […]

Coal Won’t Solve the Energy Poverty Problem

Coal Won’t Solve the Energy Poverty Problem

Times Have Changed; Old Electricity-Generation Models Don’t Work Anymore

Coal-fired electricity is no longer the economy builder its proponents say it is. Time was when coal in fact did contribute to growth in many economies, but times have changed. Today governments and private interests worldwide concede—even emphasize—the economic and environmental dysfunction of coal. We’ve just published an IEEFA Briefing Note (“Energy Poverty, Then and […]

March 3, 2016 Read More →
If Peabody Is to Recover, It Must Close More Mines

If Peabody Is to Recover, It Must Close More Mines

The World’s Biggest Private-Sector Coal Company’s Current Turnaround Strategy Won’t Work

Peabody Energy, the largest private-sector coal-mining company in the world, is out with a dismal review today of its 2015 performance. The metrics unto themselves are damning, and Peabody’s plan for turning things around is even worse. In a report we’ve just published (with the Seattle-based Sightline Institute)—“Peabody’s Strategies for Survival Ignore Market Realities and Risks […]

February 11, 2016 Read More →
For U.S. Coal, Market Realities Grow Increasingly Harsh

For U.S. Coal, Market Realities Grow Increasingly Harsh

Debt Hurdles, Reclamation and Pension Challenges, Abandonment by Hedge Funds

We distributed a briefing note this week that delves into some of the many pressing difficulties confronting U.S. coal producers. In the note (“Struggling U.S. Coal Companies Face Debt Hurdles, Complications From Reclamation and Pension Obligations, Pressure from Hedge Funds”) we talk about how the cumulative impacts of the industry’s many mounting liabilities—reclamation costs, pension […]

PEABODY ENERGY:  Management Is Rewarded as Investors Lose and Workers Are at Risk

PEABODY ENERGY: Management Is Rewarded as Investors Lose and Workers Are at Risk

Peabody Energy Management Is Rewarded as Investors Lose and Workers Are at Risk By David Schlissel, Director of Resource Planning Analysis, IEEFA

April 29, 2015 Read More →

More News and Commentary

Navajo Generating Station purchase falls through

Bloomberg: Private equity company Middle River Power LLC is ending its bid to buy Navajo Generating Station, the biggest coal-fired power station west of the Mississippi River. The collapse of the deal deeply threatens the survival of the coal-fired power plant in Page, Ariz., which is slated to close at the end of 2019 unless […]

September 21, 2018 Read More →

IEEFA update: Peabody continues to grapple with decline

Lease relinquishments are a sign of deeper trouble

In Peabody Energy’s recent relinquishment of some of its federal coal leases, the company is cleaning up its production cost side in the face of declining demand, particularly for the lower-quality 8400 BTU product that comes out of the Powder River Basin. The particular Wyoming coal in question has gone from being an asset to […]

September 20, 2018 Read More →

Wyoming moves forward with self-bonding limits

Casper Star Tribune: Wyoming’s largest coal mines would effectively be banned from self-bonding if the proposed rules that passed an advisory board Wednesday make it through one more round of public input and onto the governor’s desk. At a sparsely attended meeting in Casper, citizen members of the Land Quality Advisory Board voted 4-1 to […]

September 20, 2018 Read More →

U.S. coal production falls for third straight quarter

S&P Global Market Intelligence ($): Total U.S. coal production fell for the third quarter in a row, according to an analysis of the most recent federal data. Coal producers reported output of 180.8 million tons in the second quarter of 2018, down 3.7% from 187.6 million tons in the first quarter and 187.1 million tons […]

September 19, 2018 Read More →

Falling demand prompts Peabody to cut coal mine lease acreage

S&P Global Market Intelligence ($): Peabody Energy Corp. has asked the U.S. government to let it relinquish thousands of acres of coal leases associated with two of its Powder River Basin coal mines as the region faces ongoing pressure from waning domestic utility demand. Documents from the U.S. Bureau of Land Management show Peabody, the […]

August 30, 2018 Read More →

Gila River tribe opposes Peabody’s move to force purchase of power from Navajo Generating Station

Law360 ($): The Gila River Indian Community urged an Arizona federal judge Monday to toss a suit brought by the Hopi Tribe, a coal company and a labor group seeking to force a state water agency to keep buying power from the Navajo Generating Station until it closes, arguing a ruling in favor of the plaintiffs would undermine […]

August 24, 2018 Read More →

Powder River Basin coal output down sharply in second quarter

S&P Global Market Intelligence ($): Total coal production declined sharply in the second quarter at some of the largest coal mines in the nation, according to early data from the U.S. Mine Health and Safety Administration. Coal production from the Powder River Basin, the most productive coal region in the U.S., was down 9.9% in […]

July 24, 2018 Read More →

IEEFA Update: Why Investors Are Watching the Navajo Generating Station Story So Closely

Will Economics or Politics Prevail?

Word last week that two potential buyers are interested in the failing Navajo Generating Station (NGS) in Arizona turned heads regionally and nationally — perhaps even globally. The fate of NGS, as the power plant is known for short is a major story in the state. NGS is in remote far-northern Arizona, almost 300 miles […]

Hopi Tribe, Peabody File Suit to Keep Navajo Plant Running

Associated Press: The Hopi Tribe and coal mining groups on Tuesday sued the operator of an Arizona aqueduct system to try and keep a coal-fired power plant running beyond 2019. The lawsuit filed in U.S. District Court by the tribe, the United Mine Workers of America and Peabody Energy contends the Central Arizona Water Conservation […]

May 2, 2018 Read More →

Economics of Navajo Plant Undercut by Steady, Low Natural Gas Prices

The Republic: Two investment firms are considering a joint purchase of the Navajo Generating Station coal-fired power plant near Page, but time is running out to strike a deal. The power plant is scheduled to close in December 2019, which also will prompt the closure of the Kayenta Mine about 80 miles away. Peabody Energy […]

April 30, 2018 Read More →