The Cost of Coal

This week Mitochondriac is saddened by the trapping of six coal miners in Utah. The miners were first submerged in earth on Monday, August 6 when the mine shaft they were working caved in around them. What caused the shaft to implode is currently a controversial matter. Robert Murray, CEO of the Cleveland based Murray Energy Corp that owns the mine and employs these particular workers, insists that the implosion was caused by an earthquake. Meanwhile, others from the University of Utah maintain that any seismic activity was caused by the collapse, rather than the impetus for the collapse. Either way, six miners are stuck and have likely been buried alive in the Crandall Canyon mine.

Unfortunately, this is not an isolated incident. Coal mining is dangerous business. For a synopsis of recent coal mining incidents, click here. For those of you who don't follow the link, an average of 33 coal miners have died each year in the last 10 years. And these numbers are a big improvement on the previous decade.

As previously reported, half of America's electricity supply comes from coal. Its dominance of other forms of electricity is widely attributed to its low cost. The US Energy Information Administration reports that coal costs $23.59 per ton. In dollars and cents, coal costs 23% as much as petroleum and less than 20% as much as natural gas.

But Mitchondriac wonders about their math. By this author's reckoning, the cost of electricity from coal is 23 bucks, plus 6 American lives. Is it worth it? If America knew the true cost of coal, would we still be sending our own into dangerous mines to retrieve it?

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The tragedy of the Crandall Canyon mine became a catastrophe when three rescuers were killed while trying to save the six trapped miners. In total, nine people dead. Officials called off the rescue. The miners will remain entombed in that mountain.

Jeff Goodell, author of Big Coal: The Dirty Secret Behind America's Energy Future featured this editorial in the Washington Post on August, 26. The piece says much more about the cost of coal.

Update: House of Representatives considers change in energy policy

The Democratically controlled House of Representatives is presently considering HR 3221, an energy bill that could fundamentally alter US energy policy. The primary change under consideration is whether or not to grant $16 billion in tax credits as incentives for renewable energy. To offset the cost, the Bill would repeal tax credits to oil companies.

The Udall-Platts Amendment is also up for a vote. This Amendment to 3221 would require the adoption of a Renewable Portfolio Standard (RPS) requiring that 15% of America's electricity come from renewable sources by 2020. This Amendment will be voted on first, followed by the Bill.


Noticeably absent from the debate are any changes to Corporate Automobile Fuel Economy (CAFE) standards. Rep. John Dingell, the Chairman of the House Energy and Commerce Committee, led the charge against CAFE changes. Dingell is the longest serving member of the House. He represents the 15th district of Michigan, a backbone of the American automobile industry.

(For a good summary on the situation, click here.)

In sum, the debate is over whether or not it should be US policy to incentivise renewables, and if so, to what extent.

From the right, Ben Lieberman at the Heritage Foundation argues that the bill is a step in the wrong direction. He has several concerns:

• incentives are only necessary because renewable energy sources can't compete in the open market,
• energy costs are going to go up, especially for areas of the country that are not ripe for wind energy, and
  
• the bill tightens restrictions on access to oil and natural gas, thereby adding to America's dependence on foreign oil.

From the left, Representative Tom Udall defends the Bill, including the inclusion of a RPS.

From the middle, the Washington Post's editorial board argues that the best part of the bill is its encouragement of new technology that would make coal energy cleaner.

What do you think? Whatever you do think, you should let your Representative know. The Capitol Hill Switchboard is 202-225-3121. This policy affects us all.

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Update: The House passed the Energy Bill, including the Udall-Platts Amendment, on Saturday, August 4. The measure passed by a vote of 241-172, with largely along party lines.

The Christian Science Monitor has pooled some reactions and critiques to the bill here. To get a complete sense of the pros and cons, check it out.