By Frank Clemente and Fred Palmer; Coal is the Cornerstone, LLC. 

Fred Palmer

Frank Clemente

 

February 8, 2026 - 

THIS IS THE REALITY:

“In the week ending January 25, 2026, as Winter Storm Fern affected significant portions of the country, coal-fired electricity generation increased 31% from the previous week. .. while generation from solar, wind, and hydropower declined. Grid operators can call upon the coal fleet to increase electricity generation in extreme weather events and other times when demand surges or output falls from other generation sources, a pattern also evident in severe cold snaps in February 2021 and January 2025.” USDOE, January 28, 2026.

It has become increasingly apparent that closing coal plants in the Northeast has not only led to the highest electricity prices in the nation but has also damaged reliability throughout the region. During instances of extreme weather, hot spells or cold waves, utilities struggle to meet the load, the price for electricity explodes and last resort measures need to be put in place. Nothing was more apparent than the cold event impacting the eastern United States during late January 2026. Because coal was gone, and other fuels markedly underperformed, utilities turned to burning oil and even to jet fuel. Consider NY at the peak of the recent cold wave when between NY and New England, analysts estimated they were burning at least 300,000 barrels per day.

 

 

 

In essence, the chickens are coming home to roost in regard to the willy-nilly closing of coal power plants in the United States over the last 15 years. Over 300 coal plants closed, many prematurely while hundreds of billions of dollars were spent on the pipe dreams of wind and solar- sources which consistently underperform in times of greatest need. Organizations responsible for reliability have issued grave warnings but utilities and state regulators have consistently bowed to pressure from anti-coal groups like the Sierra Club, whose primary funder, Michael Bloomberg, has donated $500 “to “close every coal plant in the United States”

 

As coal plants have closed electric power prices have increased while reliability has been reduced and the United States will likely not be able to meet load demand from an increasingly electrifying modern society. The US is developing a monolithic dependence on natural gas for electricity. Coal generation has been greatly reduced, nuclear at scale is well more than a decade away, wind and solar are intermittent and inherently non-dispatchable, hydro has reached its ceiling and electricity from battery storage is fleeting and too expensive. 

 

 

Natural gas is the most price volatile fuel, which only last year ranged from $1.72 per million Btu to $4.20, an increase of 145% in just 12 months. In the Northeast, gas was 120 % higher in 2025 than in 2024, trading at an average price of $4.64 per Million Btu in 2025 compared to $2.10 in 2024. The impact was significantly higher prices for electricity. The average price of wholesale electricity was $42 per MWh in 2024 but exceeded $74 in 2025—a more than a $70 % increase in 12 months.

 

 

 

Consider New England where plants like Merrimack (MA) and Schiller (NH) were forced to close before their time. As a result, families. families pay some of the highest prices in the nation. The average price of electricity for households in the US is $0.18 but in MA and RI it $0.31 -75% higher. In fact, every single NE state pays electric rates significantly above the national average. 

 

In terms of reliability and risk to NE consumers, the warnings have been clear. The North American Electric Reliability Corporation (NERC) has issue dire warnings regarding the region’s "Elevated Risk"  during extreme weather due to a heavy reliance on natural gas. During extreme cold, gas is prioritized for home heating, which can lead to fuel shortages for power plants. Further, NERC warned of an extremely narrow 4% margin during heat waves, forcing NE to rely on neighboring grids and emergency operating procedures due to coal retirements.

NEW YORK is in the same situation and also faces Elevated Risk  as dispatchable, coal-fueled generation (e.g. Somerset Station) has been replaced by intermittent wind and solar as well as batteries, none of which offer 24/7 reliability. NERC warns of worsening grid reliability for New York and much of North America through 2035. Surging demand from data centers, combined with the retirement of coal plants creates a high risk of electricity shortfalls in both summer and winter.

 

But the beat goes on, regulators and utilities in both New England and New York continue down the path of increasingly expensive electricity and lower reliability-- and families and businesses in these states will pay more and be at greater risk. In all probability, these states are too far gone to be bailed out now.  They continue to pursue political idols and haven’t learned that when you’re in a deep hole, quit digging. In fact, many NE energy advocates are still ardently pursuing offshore wind, despite its demonstrated high cost.

 

Nevertheless, other regions- Mid-Continent, Southwest, Southeast and even the PJM inter-connection can learn from these harsh lessons in the Northeast. First, stop closing coal plants and expand the capacity factor of existing plants. Second, examine the possibility of recommissioning the many dozens of coal plants which have been prematurely and unnecessarily retired. Finally, take advantage of the 21^st Century Clean Coal Technology that is being deployed in other parts of the world, especially China and India. China is building the most reliable, affordable and robust power system in the world—and it is anchored by coal.

 

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Frank Clemente PhD. specializes in research on the socioeconomic impact of energy policy and is the author of The Global Value of Coal, published by the International Energy Agency (2012). Professor Clemente has served on the faculty of the University of Kentucky, University of Wisconsin and Penn State. He has extensive experience in speaking, writing and presenting data on the value of coal to the United States and the world. All opinions expressed here are presented independently from any university with which he has been affiliated.

Fred Palmer Esq. served as CEO of Western Fuels before he joined Peabody Energy as Senior Vice President for Government Affairs. Palmer was Chair of the World Coal Association Board and a member of the National Coal Council. He received the American Institute of Mining, Metallurgical and Petroleum Engineers Award for “Distinguished Achievement in Coal Technology”.  He also received a Statement of Appreciation from the National Coal Council in 2015 with a plaque for “Guidance since 1990”