We're in the middle of a fuels revolution. The relative cost of fuels is shifting significantly, with major implications to the cost of electricity. At the heart of the revolution is a sharp rise in the price of premium fossil fuels, natural gas and oil. In addition, economic and political forces are in play that may cause prices for these fuels to go higher. At a minimum, supply uncertainties and increased demand may have put a floor on premium fuels at, or near, current price levels. We can't ignore these stark changes in fuel cost. In effect, the power industry both here and abroad, is in the midst of a "Back to the Future" scenario, whereby the fuels that were the solid stand-bys in the 1950s, 1960s, and 1970s—coal and nuclear primarily—are coming back into vogue.
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