Yes, but contracts continually expire and new ones must be negotiated at
Fuel cost surcharges are standard in virtually all markets so if one
watches carefully the effects will undoubtedly start to become apparent
On Mon, 9 Jun 2008 16:26:37 +0000 (UTC), Jonathan Grobe
As dpb pointed out, supply contracts allow utilities to purchase coal
at a fixed price -- or at a periodically reset price if they contain
escalator clauses -- but when they expire the new negotiated price
will reflect current market conditions; hedges or multiple contracts
that expire at different times will help soften the blow, but they
can't put off the inevitable. Higher transportation costs are another
A year ago, my utility was purchasing thermal coal at $60 per metric
tonne; today, that has risen to $130 per tonne and the general
expectation is that it will be heading higher. They've applied for a
12.1 per cent increase and are negotiating with the PUC to establish a
separate fuel rider, which tends to suggests they expect greater
long-term price volatility.
I can get new items at flea markets, but I'm not about to claim that
is the "going rate".
This from the link I posted above for Kansas City.
One Week Ago 3.857
One Month Ago 3.586
One Year Ago 2.914
You have to understand that I am not thrilled about what is happening
with gas prices any more than you are, and if there's any bright spot
to be had in this situation I'll look for it. The bright spot here
seems to be that you're in the same leaky boat with the rest of
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