Investors paying attention to energy economics understand coal-fired power is a great way to lose money. Murray Energy’s bankruptcy makes it clear coal can’t compete in the electricity sector, yet coal keeps clinging to life, especially when owned and operated by monopoly utilities.
These utilities hold roughly $95 billion in coal power plant debt on their balance sheets, many of which operate within competitive wholesale electricity markets, where decisions on when to run those plants – and pay off their debt – are controlled by an independent market operator. Fast-falling clean energy costs have rendered 74% of U.S. coal plants uneconomic, meaning they recover less and less debt.
