The American Coalition for Clean Coal Electricity is touting a new report showing that coal will remain the cheapest electricity fuel for years to come.

The group's annual look into the country's energy landscape comes amid a struggle between coal and other fuels, particularly natural gas, for dominance in power production. The report argues that coal remains the country's best bet.

The 15-page document says, "Coal prices delivered to electric utilities over the past decade have remained low and stable relative to competing fuels such as natural gas and petroleum."

Environmental attorney Eugene Trisko, who has worked closely with the United Mine Workers union, prepared the report for ACCCE. He cited new numbers released by the Energy Information Administration indicating that coal prices will reach $2.51 per million British thermal units by 2035 compared to $6.72 per million Btu for natural gas.

"Because coal has provided about half of America's electricity over the past decade, electricity prices have actually declined when adjusted for inflation," said ACCCE CEO Steve Miller in a statement.

Miller, like many coal industry leaders, took a chance to blast the Obama administration's rule making to boost environmental oversight of power plants. He said, "New EPA regulations are making electricity and other energy sources unnecessarily expensive during a time of economic turmoil."

Last month, EIA said coal would remain the dominant source of power in the United States, albeit diminished (Greenwire, Jan. 23). Experts have said some coal will become costlier to mine, especially in the East, because of depleting reserves.

"Affordable natural gas is making a profound difference in the competitiveness of U.S. companies across key sectors," said America's Natural Gas Alliance spokesman Dan Whitten in a recent statement. "Natural gas also is substantially cleaner than dominant alternatives for power generation and transportation, and its increased use will lead to a cleaner environment."

Still, ACCCE said electricity has remained relatively cheap for households compared to other energy expenses. They say coal has helped keep the price down.

The group's report said that 60 million U.S. households earning less than $50,000 a year devote more than 20 percent of their after-tax income to energy, including transportation and home heating. In 2001, energy spending for those households was only about 12 percent.

While higher gasoline prices accounted for much of the increased energy spending, electricity prices increased below inflation, the report said.

Click here to access the ACCCE report.