Dollars And Sense Of Pipelining Coal

Coal's participation in the domestic energy market depends to a very large extent upon the cost of coal delivered to consumers. Today the principal use of coal in the U.S. is in steam-electric generating stations. Generally, it is the delivered cost per million Btu's that is given the greatest weight in choosing either oil, natural gas or coal as the fuel used in these power plants. There are three major cost components of generating electric energy in steam-electric plants. These expenses expressed in terms of "dollars per kilowatt year" are: (1) operation and maintenance of necessary facilities, (2) fixed charges of necessary capital investment, and (3) fuel. For a modern large plant, the first two items would be approximately as follows: