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January 28, 2014

Huntley Generating Station: Coal Plant’s Weak Financial Outlook Calls For Corporate And Community Leadership. January 28, 2014. Summary. Huntley’s pre-tax earnings have fallen dramatically: $110 million in 2008 to -$3 million in 2012

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January 28, 2014

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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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