Americas News
Fuel-burning US Northeast Power Plants May Face Price Rise
Expected increases in low sulfur fuel values from the start of next year could exert upward pressure on the price of 0.3% sulfur grades.
While shipping will switch to fuel oil capped at 0.5% sulfur and most plants in the US have switched to gas, some plants burn 0.3% sulfur fuel which could mean higher electricity bills for consumers, according to energy news and prices provider Argus Media.
Power plants in the northeast of the country typically come in at times of peak demand, for example, during the winter months.
Although plants could buy in stocks ahead of the January 1 change, state regulations may prevent some public utilities from doing so, the report said.
However, the overall impact of higher fuel prices could be limited as recent energy data shows that the proportion of power generated from fuel oil in the north eastern states is tiny compared to that generated from other fuel sources.
