| i forget where i read it. it wasn't a detailed analysis, just a general statement that oil and coal facilities are more costly to run (i.e., require more maintenance) than gas-fired. and this maintenance cost, together with capex, labor, fuel inputs etc., is part of total costs. however, apparently it is not typical to have pass-though provisions for this incremental maintenance cost, whereas, as you know, many producers have provisions to pass through higher fuel costs. i am curious if this is true, because if so, it could show user preference for NG in some cases even at prices where fuel switching would seem warranted. |
