Utilities Burning Gas to Preserve Coal Supplies
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Companies are burning natural gas in order to preserve coal stockpiles before demand increases during the winter heating season because of inconsistent rail deliveries, according to Morgan Stanley.
Coal stocks at utilities in July, the most recent month for which data is available, were at 125.4 million tons, the lowest for that month since 2004, as railroads struggled to replenish power producers’ coffers after a frigid winter forced them to eat through supply, government data show.