Excerpt from: EHS Industry Solutions
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| July 23, 2007 | | Citigroup analyst downgrades US coal company stocks, painting utility industry outlook bleak | Environmentalists claim a victory in their fight against new coal-fired power plants when a Citigroup Inc. analyst gave an across-the-board downgrading of US coal company stocks. The Citigroup Inc. analyst, John Hill, downgraded coal company stocks because he expects the US to regulate greenhouse gas emissions on the industry in the very near future. Burning coal, emits more CO2 than any other fuel source, making coal-fired power plants an easy environmental and financial target. The Department of Energy says utilities plan to build about 150 coal-fired power plants. But coal companies have recently suffered a string of bad news from the top most populous U.S. states. - California
Passed a global-warming law halting the building of coal-fired plants, as well as a ban on imports of power generated in other states that does not meet emissions standards. - Texas
TXU Corp. canceled plans for 8 new coal-fired plants as part of an agreement to be bought by private equity companies that were advised by Environmental Defense. - Florida
Govenor Charlie Crist signed one of the country's toughest caps on greenhouse emissions, soon after plans for 2 coal-powered stations had been eliminated. - New York
The country's 4th most-populous state -- CO2 caps on coal plants are slated for 2009 as part of a 10-state regional pact in the Northeast to cut emissions. The pact effectively diminishes the likelihood that new coal-fired generation will be built in the 10 states.
Top coal shares are down about 10% from their year highs hit early in 2007. Peabody Energy shares were down 2.47%, Arch Coal shares were down 1.36%, and Massey Energy shares were down 3.78%. by
Erin Swanson
ESwanson@enviance.com | | |
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