Mine Succumbs To Obama's War On Coal, Ohio

IBD Editorials ^ | August 2, 2012

[raptor22]

Politics: As he flies into an Ohio air base that budget cuts will close, the president won't also be visiting an Ohio coal-mining operation shut down by his policies. Hey, isn't he trying to win that state?

As Air Force One touched down Wednesday in Mansfield, Ohio, President Obama found himself at the site of one of the possible casualties of his defense cuts — the 179th Airlift Wing of the Ohio Air National Guard. It employs more than 200 airmen and more than 550 part-time employees.

Despite administration denials, the 179th Airlift Wing may be doomed. It was targeted for elimination once before during the 2005 base closings process. Now its primary aircraft, the C27J, is scheduled to be decommissioned, declared by the Pentagon in its 2012 budget as no longer cost-effective.

A stop not scheduled during the president's third visit to the battleground state in four weeks was a coal-mining operation near Brilliant, Ohio, run by Ohio American Energy Inc., a subsidiary of Murray Energy Corp. The operation employed 239 workers at its peak but will be closing as the result of President Obama's environmental policies.

Regulatory actions by President Obama and his appointees and followers were cited as the entire reason in the press release that announced the closing. "Mr. Obama has already destroyed 83,000 megawatts of coal-fired electricity generation in America," said Michael T.W. Carey, vice president of government affairs for Murray Energy. "Electric prices in the recent PJM Interconnection monthly auction were bid up 800% for 2015-16 because of this," he added.

PJM Interconnection, the company that operates the electric grid for 13 states, including Ohio, recently held its 2015 capacity auction. This gave the first real indication of just how drastic the effects of Obama's war on coal will be.

[Alberta's Child]

I don’t dispute any of this, but I’m not totally familiar with how these energy futures exchanges work. With an 800% increase over several years, it sounds like the buyers are building a lot more than just coal plant closings into their bids.

[Alberta's Child]

That's not really how it works. Let's say a utility has two different plants in the same region -- one coal, and one natural gas. Let's say they each generate about 50% of the power for the region. If the price of natural gas declines considerably, they'll simply reduce the output of the coal-fired plant and increase the output of the gas-fired plant. Maybe a month from now, the gas-fired plant supplies 60% of the region's power and the coal-fired plant supplies 40%.

If the output of one plant declines to a very low point due to these price considerations for fuel, the utility may simply decide to close the plant rather than use it to supply so little power.

[griswold3]

“In northern Ohio served by FirstEnergy, the price will be $357 per MW.”
No worries,man! Obama supporters flood that area of our state. He’ll surely take care of them!

[ExTexasRedhead]

Does it feel as though we’re living in the Obama Fascist regime? Do you have your number for Obama’s Death Panel review yet? Anyone wonder if Big Bro and Big Sis have boxcars waiting outside their Death Panel site?

[palmer]

ts regulations are what is about 95% responsible for the increases of the price of electricty in the last 10-15 years

Don't worry, Obamanation will just blame the greedy electric companies.

[tatown]

Absolutely, coal is king.

Some of us remember well what happened in the late 90’s/early 2000’s when nat gas prices started their rocket ride upwards killing $100’s of millions in gas turbine projects across the county. I don’t expect the same magnitude of change over the next few years but prices will be going up.

[dynoman]

Here’s the real time contour map of PJM’s electricity prices. As the colors change to red the prices are higher. You can look at the legend to see the color/price relationaship. Also you can select the hubs etc. then mouse over them to see wha the price is at that specific point.

https://edata.pjm.com/eContour/#app=ecca&e929-selectedIndex=2

Here’s the same real time map for for MISO, it’s probably easier to understand;

https://www.midwestiso.org/MarketsOperations/RealTimeMarketData/Pages/LMPContourMap.aspx

[dynoman]

Here’s the real time contour map of PJM’s electricity prices. As the colors change to red the prices are higher. You can look at the legend to see the color/price relationaship. Also you can select the hubs etc. then mouse over them to see wha the price is at that specific point.

https://edata.pjm.com/eContour/#app=ecca&e929-selectedIndex=2

Here’s the same real time map for for MISO, it’s probably easier to understand;

https://www.midwestiso.org/MarketsOperations/RealTimeMarketData/Pages/LMPContourMap.aspx

[hippyhater]

Someone should interview these folks on why they lost their jobs... Great commercial for Mitty

[hippyhater]

Someone should interview these folks on why they lost their jobs... Great commercial for Mitty

[Cen-Tejas]

Sir,

The 2010 “cost per million btu of coal was $1.70.

The 2010 “cost per million btu og ga was $4.32.

I don’t have immediate access to 2011 numbers or 2012.

[Smokin' Joe]

The thing about closing a coal mine is that it will have to be 'reclaimed'. After that is done, you can't just plug it in and throw the switch, so to speak, and the costs of re-opening it may prove prohibitive unless prices are really high. Natural Gas wells deplete fairly rapidly (faster than oil wells), and Federal control of water for fracking or other purposes (see what's happening in New Mexico) will ultimately control the supply of natural gas. With the coal mines shut down the freezing masses can be more easily loaded on 40 and 8's for the trip to the camp in a warmer climate.

It isn't the money, it's the control.