Some US utilities have low coal stocks: EEI

NEW YORK (Reuters) - A top executive at utility industry group Edison Electric Institute (EEI) on Tuesday said some U.S. utilities have low coal stockpiles headed into summer, mostly due to delivery problems, but shrugged off the possibility of a blackout.

"Traditionally we have stockpiles of 60 days, but some of our companies have stockpiles below 30 days," said EEI Executive Vice President David Owens, speaking at the Reuters Global Energy Summit in New York. "I think there are a multiplicity of factors, but the most significant factor is coal delivery."

U.S. coal burning utilities have complained of supply disruptions and delays since last year as the railroads that deliver the fuel have dealt with track damage and a shortage of locomotives.

While rail companies have said they are working to solve the problem, Owens said that some utilities continue to have delivery difficulties.

"We haven't seen an improvement -- things have been levelized but we're not back to 60 days stockpiles," he said.

Even with coal stock piles low, Rogers said that the U.S. power industry was prepared to weather a hot summer, noting that the industry now has mandatory reliability standards.

"We're not going to have a blackout," he said. "I think there will be an accountability test that all participants in the marketplace will have to adhere to. I think that's a good thing for the American public and I think that will improve reliability substantially."

Owens also said that utilities need more clarity on how to apply a clean air law that is the subject of a Supreme Court case against Duke Energy Corp. (DUK.N: Quote, Profile, Research, Stock Buzz).

The court will decide whether certain modifications Duke made at some of its power plants require the company to install pollution control equipment at the plants.

"We don't believe that when you make those routing adjustments in those facilities, first, that it's a major modification of the plant and, second, that it results in major emissions into the atmosphere," Owens said.