What does it mean to replace coal plants with natural gas plants?

In late May, The New Times published an article about the shifts in the electric power sector’s fuel mix, Even in Coal Country, the Fight for an Industry. The article provides a thoughtful view of the significant transformations that are occurring right now in the US power and energy industry. Due to increased environmental regulations of coal plants, and the greater availability of natural gas, electric utilities are mothballing their coal plants and building natural gas-fired base-load power plants.

As the article states, the economics of switching to natural gas are compelling– given where gas prices are these days. The bottom line for purchasers of electricity in competitive markets is that when there are price increases at the wholesale level, business customers will feel the impact in higher electricity costs. I would expect greater volatility in electricity and natural gas prices once we see supply markets tighten up.