Texas Coal Plant To Shut Down by 2020

[jtlien + 1]

On 9/26/2018 at 10:52 AM, Dennis Coyne said:

Jan Van Eck,

This comes from the "private is always best" mentality in the US.  Conservatives would complain that taxes were being spent to maintain the rail lines, and if the prices to use the rail lines were high enough that taxes to maintain the lines were not necessary, the rail carriers would claim they were being extorted by the government (or whatever entity owns the rails) and being charged too high a price.

I like your idea, it would work in Europe, but in the US rail has always been messed up, probably this will continue.

The main reason coal is having a problem is that Natural Gas fired electricity is far cheaper in the US due to very low prices for natural gas.  Coal cannot compete in most cases, perhaps cheaper rail would help a bit.  Coal is expensive to move.

Note that pipelines are privately owned, much like rail, it is not a problem for natural gas.

I don't think the problem is that the railroads are private.    Here in Wisconsin, we get a lot of coal from the Powder River basin in Wyoming.    The utilities here have been screaming bloody murder about the rates charged by the railroad (Burlington Northern) for about 50 years.    There have been numerous attempts over the years to put together a merger of Iowa/Minnesota railroads and then build an  extension out to Wyoming to compete with BNSF.   There has even been proposed an coal slurry pipeline to be built.   But every time, the competitors are shot down by the North Dakota legislature.    You see, there was a deal made long ago.   The Great Northern (BNSF) gets a monopoly, as long as they keep prices for shipping North Dakota grain etc cheap.   The problem is that the states can regulate competition.   If there was freedom for competitors to enter, then I assure you that competitors would come out of the woodwork.    Everyone knows how much the railroads are making on this.