Fuel transportation costs—such as rail rates for coal and pipeline fees for natural gas—affect the price of electricity. Higher transportation costs raise generation costs and therefore retail electricity rates, while lower transport costs help keep prices down.
Fuel Transportation Costs
$18.77/ton
Direction: Down
Adjusted, down from $19.29 in 2022: average transportation cost for coal fell to $18.77/ton; some utilities like DTE returned fuel & transportation savings to customers, lowering bills.
Fuel transportation costs are a key component of fuel switching economics and power generation costs. Higher rail and pipeline fees can increase delivered fuel costs and drive up electricity prices, while lower transportation costs help maintain affordability. For more insights into related market drivers, explore our Coal Prices & Availability indicator and the U.S. Energy Information Administration’s fuel costs data.