In case anyone missed it, Friday’s “Today in Energy” item from the Department of Energy’s Energy Information Administration reported:
Total coal stockpile levels at U.S. electric power plants were 139 million tons in August 2011—the lowest total level for August since 2006. Bituminous coal stockpiles declined the most, down 27% since August 2009. Increases in the spot price of Central Appalachian coal as well as some supply disruptions in the late spring of 2011 contributed to declining stock levels.
Coal stockpile levels typically decline during summer months as power plants burn through stocks to meet seasonal peak electric demand for air conditioning load. Stockpile levels have been depressed throughout 2011 compared to 2009 and 2010 levels. According to average monthly data, the spot price of Central Appalachian coal (a key benchmark for the price of Eastern bituminous coal) was up 18% since August 2010. Flooding in April and May disrupted some coal deliveries, especially in the Southeast, and likely played a role in the declining stock levels going into the summer of 2011.
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The coal pile at the waterfront coal terminals in Newport News, VA remains as high as ever. In fact, wind fences are being re-examined to protect neighboring communities from blowing coal dust. Maybe we could look into how much of this coal is being exported vs. how much is retained for domestic use?
Maybe the biggest reason the stockpiles declined so much was extra electricity was produced to keep building air conditioned during a year of record breaking heat.