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Struggling Financial Outlook for Huntley Coal Plant Demands Leadership Action

The Huntley Generating Station has witnessed a steep decline in financial performance, with pre-tax earnings plummeting from $110 million in 2008 to -$3 million in 2012. Factors such as low natural gas prices, stagnant electric demand, and rising coal costs have significantly impacted its viability. The outlook remains bleak, with no recovery expected through 2020. Additionally, wholesale electricity prices in Western New York have decreased by 36% from 2008 to 2013, further challenging coal-fired power. Leadership from both corporate and community levels is essential to address these pressing issues.

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Struggling Financial Outlook for Huntley Coal Plant Demands Leadership Action

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  1. Huntley Generating Station:Coal Plant’s Weak Financial Outlook Calls For Corporate And Community Leadership January 28, 2014

  2. Summary • Huntley’s pre-tax earnings have fallen dramatically: $110 million in 2008 to -$3 million in 2012 • Low natural gas prices, stagnating electric demand, and rising coal prices have driven Huntley’s decline • Not expected to recover through 2020 • Huntley units are not financially viable for the near future

  3. Trends impacting coal-fired power • Natural gas displacing coal: natural gas prices fell 60% from 2008 to 2013 • Low gas prices driving down wholesale electricity prices. Western New York wholesale energy prices fell 36% from 2008 to 2013 • Coal prices increasing • Coal units are retiring (more than 13,000 MW from 2009-2012)

  4. Huntley’s recent performance

  5. Huntley’s Energy Margin, 2005-2013

  6. Huntley’s earnings EBITDA: earnings before interest, taxes, depreciation and amortization

  7. Wholesale market prices not expected to recover • Coal prices increasing at ~ 7%/year • Huntley units aging (currently 55-56 years old) Future outlook

  8. Projected future earnings EBITDA: earnings before interest, taxes, depreciation and amortization

  9. Thank You! Cathy Kunkel Institute for Energy Economics and Financial Analysis 304-237-3802

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