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EMD-81-71 1 (1981-09-08)

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BY THE COMPTROLLER GENERAL


To The Senate Committee


On Energy And Natural, Resources


OF THE UNITED STATES


Less Regulatory Effort Needed To

Achieve Federal Coal Conversion Goals

A major objective of Federal energy policy
since 1974 has been to increase industrial coal
use as boiler fuel in place of natural gas and
imported oil. Now, however, the incentive to
use coal has been strengthened as oil and gas
prices have increased.                                                I II  I


The prospects for voluntary conversion of ex-
isting utility powerplants to coal has im-
proved. GAO identified 15 utility companies
which are attempting to convert 51 existing
boilers at 23 powerplants to coal, which could
save about 235,000 barrels of oil per day by
1988i This savings equals about two-thirds of
the savings potential of DOE's program for
converting existing boilers. The conversion of
most of the other powerplants in DOE's pro-
gram is uncertain since they are opposed by
the utility companies.
Coal is expected to be predominant among
the fossil fuels chosen by electric utilities and
otherl industrial companies for use in large
new Ioilers. The electric utility industry pro-
jects that about 97 percent of its capacity ad-
ditiols through 1989 will use energy sources
other than oil or gas. Yet, the depressed sales
of large Industrial boilers in recent years pre-
cludes verification of the fuel use trends of
the romainder of industry.
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       EMD-81-71
SEPTEMBER 8, 1981


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