The Energy Information Administration's latest energy forecast calls for coal consumption in the electric power sector to decline to 944.4 million st in 2012, down from the previous forecast of 966.5 million st.

The EIA, which released its Short-Term Energy Outlook on Tuesday, is now projecting coal consumption in the electric power sector to remain relatively unchanged, year-over-year, in 2012. The previous forecast called for coal consumption to increase 1.6% to 966.5 million st.

In 2011, EIA expects coal consumption in the electric power sector will decline by nearly 3%, as total electricity generation rises by less than 1% and generation from natural gas by 3.5%.

The EIA has also revised its estimates for US coal prices. The report said that average delivered coal prices to the electric power sector have risen steadily over the last 10 years, with an average annual increase of 6.7%. EIA expects this trend to continue in 2011, with much of the increase attributed to a sharp rise in transportation costs.

The projected power-sector delivered coal price, which averaged $2.26/MMBtu in 2010, averages about $2.38/MMBtu in 2011 and 2012. The EIA's previous estimate had coal prices averaging $2.32/MMBtu in 2011 and 2012.