15 Aug '11, 1pm

For Coal Plants, a Game of Chicken

J. Kevin Fitzsimons for The New York Times A.E.P. has indicated that it will shut down generators at the Philip Sporn power plant near New Haven, W.Va. But some companies are waiting to see what their competitors will do. In an article in Friday’s paper, I described how some companies that operate dirty coal-fired power plants are playing chicken as they face a decision on whether to retire them or install expensive scrubbers and filters. They are waiting to see what their neighbors will do as new environmental rules take effect: as with two restaurants in a town that can support only one, if your neighbor goes out of business, more business comes to you, and prices may well rise. In fact, in the largest grid jurisdiction in North America, the one operated by PJM Interconnection , money comes to plant owners in several different ways. The biggest is selling energy, or kilo...

Full article: http://green.blogs.nytimes.com/2011/08/15/for-coal-plants...

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For Coal Plants, a Game of Chicken

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