GLG News by Mr. Thomas Shewski, Owner
GLG News is now G+ Insights
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G+ is a community for professionals, academics and entrepreneurs to connect through online discussions and in-person meetings. You will continue to see G+ Insights (formerly GLG News) here as well as on the G+ website, where you can share and discuss the G+ Insights you read.
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Fuel Switching from Coal- to Natural Gas-Fired Electricity Generation
December 8, 2008
Oil Price Drop Forces Big Energy to Retreat | www.time.com
Current natural gas prices of approximately $6.00/MMBtu allow electricity generation on natural gas to be more economic compared to coal in certain areas of the U.S. This is further favored by the time of the year.
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U.S. Thermal Coal Exports for 2009
December 8, 2008
U.S. Coal Export Boom Over for Now | www.guardian.co.uk
U.S thermal coal exports will be down in 2009 versus 2008 since the U.S.’s coal is no longer competitive into Europe and other world locations.
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CSX Tariff Rate for Export Steam Coal to Rise January 1, 2009
December 8, 2008
CSX Tariff for Export Bituminous Coal | www.csx.com
The CSX is raising tariff rates for export steam coal on January 1, 2009
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Rate Case Demonstrates Coal Transportation’s Attractiveness to Union Pacific and Other Railroads
November 14, 2008
Oklahoma Gas & Electric Files Rate Case Against Union Pacific Railroad for Coal Transportation | www.stb.dot.gov
The most recent Surface Transportation Board Rate Case filed by Oklahoma Gas & Electric (OG&E) against the Union Pacific Railroad (UP) for coal transportation from the Powder River Basin to the Muskogee coal plant actually shows the attractiveness of this move to the Union Pacific Railroad and other railroads. The commentary section describes the positive economics around this Rate Case to the UP.
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Surface Transportation Board Rate Case Process and Why it is Biased for the Railroads
November 14, 2008
Oklahoma Gas & Electric Files Rate Case Against Union Pacific Railroad for Coal Transportation | www.stb.dot.gov
Another coal-transporting utility has filed a Rate Case at the Surface Transportation Board (STB) alleging excessive rates for coal transportation. This most recent case was filed by Oklahoma Gas & Electric (OG&E) against the Union Pacific Railroad (UP) for coal transportation from the Powder River Basin to the Muskogee coal plant. The commentary section describes the STB Rate Case process using the OG&E situation and its bias to the railroads.
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Railroad Fuel Surcharge Court Case to Proceed – Potential Costly Outcome to Four Class I Railroads
November 12, 2008
Railroads Face Price-Fixing Suit on Surcharges | money.cnn.com
The suit alleges four of the Class I Railroads violated Federal antitrust laws with respect to fuel surcharge. The four Class I Railroads in the suit are CSX, Norfolk Southern, BNSF Railway, and Union Pacific Railroad. The time period is July 2003 through June 2007
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November 4, 2008
CP Rail Expects DM&E to Earn More than Forecast | www.reuters.com
The Dakota Minnesota & Eastern (DM&E) Railroad was recently acquired by the Canadian Pacific (CP) Railway. The DM&E has for years been proposing an extension to the Wyoming Powder River Basin coal reserves. This project, if commenced, would upgrade an existing 600 miles of track and provide for 260 miles of new track expansion into the coal fields of the PRB. When the DM&E was a stand-alone Class II Railroad, it applied to the Federal Railroad Administration for Government-backed loan guarantees for this potential project. The submissions and comments related to this FRA filing tell of the potential affects on the DM&E, Union Pacific (UP), and BNSF.
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Coal Rail Transportation Volume and Rate Increases Positive for the Railroads
October 20, 2008
Seminole Files Rail Complaint to Protect Its Members | www.marketwatch.com
The year-to-date and outlook for many of the items transported by the U.S. railroads are down, coal transportation has been positive. The discussions that follows list some of the positives for the railroads.
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Labor, Permitting, Geology, and Inspections Hindering Coal Production, Adding to Costs
October 20, 2008
Interested In Workin' In A Coal Mine? | www.forbes.com
Coal companies have issued force majeure declarations to customers due to various production-related issues. These are discussed in the section below.
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Refund on Coal Excise Tax Paid on Exports Contained in Emergency Stabilization Act
October 8, 2008
Coal Gets Help in Financial Bailout | wvgazette.com
As the referenced article states, there are many benefits in the Emergency Stabilization Act for the coal industry. One not discussed is the refund of the coal excise tax. The commentary section discusses this.
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Refined Coal – Things to Consider as a Result of Changes to Tax Credit Qualification
October 7, 2008
Congress Extends Refined Coal Tax Credit | www.marketwatch.com
The Emergency Stabilization Act signed into law on October 3, 2008 includes an extension of tax credits for renewable energy and refined coal. The discussion that follows includes items to consider regarding the refined coal tax credit.
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Activated Carbon for Mercury Control – Potential Demand
September 22, 2008
ADES: Multi-Year Supply Contract with Luminant for Activated Carbon | www.tradingmarkets.com
The D.C. Circuit Court of Appeals ruled on February 8, 2009 in favor of the plaintiffs that coal plants could not be removed from the list of mercury sources subject to a Maximum Available Control Technology (MACT) standard and the subsequent movements to require EPA to set a mercury MACT standard for coal-fired power plants provides an opportunity in the mercury control space, including activated carbon.
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September 22, 2008
UBS Cuts FreightCar America to ‘Sell’ on Price | www.forbes.com
The commentary section discusses the current market and outlook for coal railcars
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Natural Gas vs. Coal Generating Economics
September 22, 2008
NYMEX Natural Gas Rises with Crude, Damage Reports | www.forbes.com
The fuel-switching from coal to natural gas affects the demand and price for each commodity. The commentary below discusses what issues are part of the analysis of a utility or merchant fuel buyer on whether to switch fuel sources to fuel power plants.
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Coal Transportation Outlook for the Railroads
September 22, 2008
Railroad Shipping | www.logisticsmgmt.com
Although the year-to-date and outlook for many of the items transported by the U.S. railroads are down, coal transportation has been positive. The commentary section below discusses the positives of coal transportation for the railroads.
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Clean Air Ruling’s Potential Affect on Utilities and IPPs Long SO2 and NOx Allowances
August 19, 2008
Clean Air Ruling Raises Doubts Over Investments | www.cattlenetwork.com
Court’s decision vacating the Clean Air Interstate Rule (CAIR) potentially affects utilities or IPPs long the allowances as described in the section that follows.
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August 18, 2008
Proposal Would Cut Oregon Coal Plant’s Haze-Causing Pollution | www.oregonlive.com
When air pollution retrofits are placed on a power plant, a regulated, investor-owned, utility financially benefits. An unregulated, independent power producer (IPP) does not necessarily financially benefit.
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CAIR Ruling Makes it Cheaper to Turn Off/Bypass Scrubbers, But Unlikely to Happen
August 18, 2008
Power Failure: A Court Defeat for the EPA Leaves it Up to Congress to Tackle Utilities' Air Pollution | www.washingtonpost.com
The Court’s July 11, 2008 decision vacating the Clean Air Interstate Rule (CAIR) caused the price of SO2 emissions allowances to decrease less than the cost of operating a scrubber to reduce the SO2 emissions. The discussions that follow discuss this and the likelihood of this happening.
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Coal- to Gas-Fired Generation Considerations: It is Not Just Fuel Economics
August 18, 2008
Gas Drop Buoys Dynegy, Mirant in Slowing U.S. Economy | www.bloomberg.com
As the article points out, natural gas-fired generation may be cheaper than coal-fired generation in certain parts of the nation. The section below discusses some of the items that go into the decision to fuel switch from coal to natural gas.
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Court Decision Striking Down CAIR Affect on SO2 Allowance Pricing
July 14, 2008
Clean Air Efforts Suffer Two Setbacks | www.philly.com
The court decision striking down the Clean Air Interstate Rule will have an affect on SO2 allowances and the SO2 premium earned by coal suppliers.
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