Reply #4: Plans for coal power plants scrapped [View All]

BILLINGS, Mont. - At least 16 coal-fired power plant proposals nationwide have been scrapped in recent months and more than three dozen have been delayed as utilities face increasing pressure due to concerns over global warming and rising construction costs.

The slow pace of new plant construction reflects a dramatic change in fortune for a fuel source that just a few years ago was poised for a major resurgence. Combined, the canceled and delayed projects represent enough electricity to power approximately 20 million homes.

The U.S. Department of Energy's latest tally of pending coal plants, released last week, shows eight projects totaling 7,000 megawatts have been canceled since May. That's besides the cancellation earlier this year of eight plants in Texas totaling 6,864 megawatts. Utilities have also pushed back construction on another 32,000 megawatts worth of projects, according to the Energy Department report.

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In the late 1990s, with natural gas prices rising, utilities eyed cheaper coal as the fuel of choice to meet the growing demand for electricity. Now it appears the resurgence of "King Coal" may have been overstated — or at least put in check.

As Congress considers restrictions on greenhouse gas emissions, analysts said utilities are suspending some projects while they wait to gauge the economic impact of future regulations.

Meanwhile, material costs and demand for skilled labor has prompted plant costs to spike 40 percent or more. Industry representatives blamed increased competition from China and other developing nations aggressively pursuing new coal plants.

http://news.yahoo.com/s/ap/20071018/ap_on_bi_ge/coal_power