Skip to Main Content
October 29, 2014
Brattle Featured in Bloomberg Businessweek for Report on the Potential Impact of Coal Plant Retirements on Future Power Prices

The Brattle Group was recently featured in a Bloomberg Businessweek article, “Breathing Cleaner Air to Cost Americans on Utility Bills,” which outlines the implications U.S. electricity markets will face as clean-air regulations shut down more coal-fired power plants, forcing producers to rely more on natural gas.

The Brattle study featured in Businessweek describes the likely causes and magnitudes of feedback effects of coal plant retirements on short- and long-term wholesale electricity prices. The report finds that the main drivers for feedback effects will be the reduced supply for electricity generation and increases in the cost of natural gas due to increased gas demand from replacing the coal retirements.

Brattle estimates the loss of cheaper coal units will result in an increase in power prices by as much as 25 percent on grids that serve about a third of the U.S. population. The study also found that the biggest impact will likely be in the Midwest and Northeast, where the demand for gas for heating spikes during the winter months.

To read the full article, please visit the Bloomberg Businessweek website.