Hundreds of coal plants are being shut down across the country, not only older plants due to inefficiency, but fully functional plants. The rise of natural gas 10 years ago, and of cheap wind energy in recent years, quickly eroded coal’s once-dominant position in U.S. baseload power supply from 50 percent to 30 percent. Investors will no longer invest in new coal projects, period. Many major insurance companies, like Lloyd’s of London, refuse to insure coal-related ventures.
These events came more quickly than many predicted. Lack of foresight is why La Plata Electric Association, failed to sidestep a costly mistake in 2007, extending the contract that now binds us – until 2050 – to a dying technology. Or why LPEA’s electricity provider, Tri-State, didn’t divest years ago of their huge, financially imperiled coal holdings.
But coal’s demise was clear to those who cared to look. The fact that Tri-State sought extensions to new contracts clearly suggests that it was seeking to hedge against coming financial instability.
We need directors like Kirsten Skeehan who are willing to listen to all viewpoints, actually do their homework, and think deeply about all options in order to develop a financially sound, diversified approach to keeping our lights on.
Eric Van Geet
Durango
