September 5, 2017 Read More →

Moody’s: Much-Anticipated Federal Energy Report ‘Will Not Save Coal’

SNL:

A fossil fuel-friendly federal government report “will not save coal,” according to a new note out from Moody’s.

While the U.S. Department of Energy’s recent study of the U.S. electricity grid was generally written in a tone favorable to coal, Moody’s said, the report does not change expectations the sector will decline in the long term. Moody’s notes the report highlights the role of lower-priced natural gas as a driver behind coal plant retirements but does not conclude the retirement trend has been “premature, inappropriate or cause for alarm from a reliability perspective.”

“We continue to expect ongoing coal plant retirements, and continued substitution of coal-fired generation with natural gas and renewables,” the Moody’s note states.

Moody’s wrote that U.S. coal miners will continue to be challenged, particularly those focused on domestic thermal coal supply such as Cloud Peak Energy Inc.Murray Energy Corp. and Armstrong Energy Inc. The DOE report, the investment note said, falls short of concrete policy recommendations and solutions and is unlikely to lead to “material and rapid change that would reverse coal’s fortunes.”

More ($) Moody’s: DOE study ‘will not save coal,’ unlikely to resolve energy challenges

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