Bush urges agencies to assess possible coal shortage
BY MELISSA SHUMAN
Kansan Staff Writer
U.S. President George Bush has asked agencies like the Board of Public Utilities to help evaluate a nationwide coal shortage.
On Friday, the North American Electric Reliability Council sent a letter to utility managers about a team being assembled by the U.S. Department of Energy to study reduced coal deliveries because of "limitations established by the railroad." Bill Camm, director of production support services, said construction to railroad tracks in Wyoming has slowed coal supply trains in utilities across the Midwest.
The BPU has two plants that operate on coal, Nearman Creek Power Plant and Quindaro Power Plant.
Susan Allen, public affairs officer, said the BPU gets its coal from the Powder River Basin in Wyoming. She said the coal from this area is unique because it is lower in sulfur, so when Powder River Basin coal burns, it's better for the environment.
Camm said the BPU is one such agency that depends on trains to make coal runs to Wyoming. A "bottleneck" area where train tracks narrow on the way to Wyoming is jointly owned by Burlington Northern Santa Fe Railway and Union Pacific. Camm said in May, two train derailments on two consecutive days spurred an investigation into the condition of the tracks.
"The investigation showed 100 miles of track needed to be rebuilt, ties rebolted," he said.
Camm said the railroad companies began immediate construction, which reduced the number of trains going through the bottleneck from 100 to 60 trains.
"Some deliveries are slow or nonexistent," Camm said. "BNSF has said the track work will continue until November, and UP said they'll deliver 85 to 80 percent of coal contracts."
Camm said the railroads have told utilities they would not let any utility run out of coal entirely. He said the coal shortage has caused depletion in coal reserves for Quindaro and Nearman. He said Nearman has 112,000 tons of coal, or 31 days worth, and Quindaro has 12,000 tons or 6 days worth of coal. Camm said Quindaro can also run on natural gas in case of emergencies to provide power, and there are combustion turbines that can also provide backup power. The BPU plans each year to purchase power during the summer months; so more power could be purchased in the event of an emergency.
"We're required to provide power," Allen said. "So ratepayers will be OK."
The BPU will fill out a questionnaire and return it to the NERC about meeting electrical demand.
Camm said although construction on the tracks will likely be finished in November, the coal shortage might last longer because utilities will want extra loads of coal to build up their supplies.
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