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

IEEFA Update: Financial Facts Don’t Support Coal Industry’s Claims of 2017 Recovery

Failed Deals, Financial Losses, and Cancelled Leases Contradict the Rosy Picture Offered by Industry Executives

As 2017 ended, coal industry leaders made a number of upbeat statements to the press and investors, citing what they saw as good news: regulatory rollbacks by the Trump administration, promises of future federal subsidies, improved profits, an increase in coal exports and metallurgical sales, a few loan closings, and a late year stock price […]

January 2, 2018 Read More →

U.S. Coal Industry Fails Tribal Communities Across American Southwest

NBC News: Over the last century, in particular, American settlers and institutions urged the Navajo into livestock ranching, land development and uranium mining, only to end or curtail those industries, leaving the tribe to manage the disastrous fallout. Now, history’s pendulum appears to have swung again. A coal business, dropped into the Navajo heartland a […]

December 18, 2017 Read More →

U.S. Coal, Nuclear Industries Seek Billions in Tax-Credit Bailouts

Axios: Two separate lobbying pushes are underway urging Congress to create new multi-billion dollar tax credits benefiting virtually all coal and nuclear power plants across the United States. The price tags: up to $65 billion for coal and $4.8 billion for nuclear. The efforts show the aggressive lengths companies are going trying to survive in […]

December 7, 2017 Read More →

In ‘Challenging Transition,’ Navajo Generation Station Will Stay Open Through 2019

The Hill: The coal-fired Navajo Generating Station has obtained the approval it needs to stay open through 2019. The Salt River Project, an Arizona utility that partially owns the plant and is negotiating on behalf of the other owners, announced Wednesday that the federal Bureau of Reclamation and Bureau of Indian Affairs had completed their […]

November 30, 2017 Read More →

On the Blogs: Proposed Bailout of U.S. Coal Industry Puts a Spotlight on Failing Arizona Plant

Triple Pundit: What a mess Energy Secretary Rick Perry dumped into the lap of FERC, the Federal Energy Regulatory Commission. Perry has taken a lot of heat for proposing new protections for coal and nuclear power plants, but go-ahead has to come from FERC. The decision is not expected until December 11, and meanwhile the […]

November 13, 2017 Read More →

Peabody’s Hand in Writing a Federal Coal-Bailout Initiative

Bloomberg News: Days after Energy Secretary Rick Perry requested a study on how to help coal-fired power plants, a lobbyist for the largest U.S. coal producer contacted the department to offer his advice. Many of those ideas became part of the department’s efforts to help the fuel source. Travis Fisher, a senior adviser at the […]

November 9, 2017 Read More →

St. Louis, Home of Peabody and Arch Coal, Votes to Move to Renewables

NBC News: St. Louis became the 47th American city to set a goal of getting all of its electricity from clean, noncarbon sources with a vote by local lawmakers Friday — a significant watershed given its long-standing ties to the fossil fuel industry. The unanimous vote by the Board of Aldermen commits the city to […]

November 1, 2017 Read More →

Administration Considers Easing Cleanup-Bonding Restrictions on 3 Recently Bankrupt U.S. Coal Giants

SNL: Limits on coal company self-bonding will be reconsidered by the Trump administration and possibly rescinded or revoked, the U.S. Department of Interior wrote in a recent report. Interior highlighted potential reversals of Obama administration initiatives in a report responding to an executive order calling for a review of actions that potentially burden domestic energy. […]

October 31, 2017 Read More →

IEEFA Update: Coal Is Dying, and EPA’s Clean Power Plan Reversal Can’t Save It

Energy Policy From Washington Drifts Toward Irrelevance

By turning the clock back on American energy policy through reversal of the Clean Power Plan, EPA Administrator Scott Pruitt — if he succeeds — will end up making electricity for everyday Americans more expensive. And as power bills rise so will the coal industry’s harmful impacts public health and the environment. I say “if […]

October 13, 2017 Read More →
IEEFA Update: Fallout for Peabody’s Wyoming Coal Holdings From Shutdown of Plant in Texas
and

IEEFA Update: Fallout for Peabody’s Wyoming Coal Holdings From Shutdown of Plant in Texas

The Loss of a Key Customer Challenges a Major Mining Company’s Bankruptcy Recovery

[Second of two parts] Luminant’s announcement that it will soon retire the Monticello Plant in Titus County, Texas, improves its bottom line by eliminating a liability from the company’s balance sheet. For Peabody Energy, which supplies that plant with Powder River Basin coal, the shutdown is not such good news. The Monticello plant gets its […]

and October 12, 2017 Read More →