Sunday, September 23, 2012

200 + coal fired electric generators face shutdown by 2017.

Click here for a previous article about rising utility costs resulting from decreased coal production.  Electric distributors (including those in Pennsylvania) have already signed contracts to pay massive cost increases for electric capacity beginning in 2015.  These increases will be passed on to consumers.

For those who would like more bad news, the Daily Caller reports the following:

Within the next three to five years, more than 200 coal-fired electric generating units will be shut down across 25 states due to EPA regulations and factors including cheap natural gas, according to a new report by the American Coalition for Clean Coal Electricity (ACCCE).
Pennsylvania is one of the states facing shutdowns. 

Homeowners and investors must consider the potentially massive utility increases.  Investors in particular must factor these costs into potential purchases as well as decisions regarding rental rates and income qualifications for tenants.

My own prediction is that properties serving fixed income residents will face the most hardships from these increases - unless there are corresponding government subsidies for fixed income tenants to cover the costs of rising utility prices.  In that event, owners of middle class properties (and their tenants) will be the hardest hit. 

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