Based on data from Austin Energy for the Fayette Coal Power Project:
- In the past 10 year, Coal fuel costs rose from $37 to $87 million (up 138%)
- In FY2008 alone, Coal fuel costs jumped from $50 to $87 million (up 73%)
The huge price jump last year was attributed to a change in the cost of delivery for cheap coal harvested from huge strip mines in Wyoming. Will coal costs continue to rise during the next 10 years? Or will they stablize as projected by Austin Energy and their consultants? A key factor to consider is that American coal has recently become a global commodity feeding the rapidly growing demand for coal power in Asia. With delivered coal prices (about $2 per mmBTU) still about 1/6 of world crude oil prices (about $12 per mmBTU), there appears to be potential for Austin’s coal fuel costs to rise further.
Extracted from information provided by Austin Energy, July, 2009:
Graph of Austin’s Coal Fuel cost 1999-2008 from information above:
