We’ve got a dirty secret to tell you. Concern is growing that power plants could soon dump coal for nat gas. Why? There are really two issues here.
One is that power plants are facing new regulations concerning clean energy and coal generates huge amounts of carbon dioxide when it burns, which in turn leads to global warming.
And two is the cost of nat gas. It’s plunged to 6-year lows. When nat gas was more expensive, coal was considered a cheap alternative but now that's not the case.
“Nat gas has slipped below $4.40 and at that level it becomes beneficial for power generators to switch,” explains Joe Terranova..