Coal companies' shares surged on news that the Trump administration is working to direct grid operators to buy power or capacity from coal and nuclear plants to ensure grid resiliency.
Stock for leading Powder River Basin producers Peabody Energy Corp. and Cloud Peak Energy Inc., shot up more than 4% in afternoon trading.
Peabody closed June 1 at $45.35, about 4.8% over the previous day's closing price, while Cloud Peak closed at $3.77, up 4.1% over May 31.
Arch Coal Inc. saw a more modest increase of just over 2%, closing at $83.81, though not enough to offset the sharp drop-off that followed the company's first-quarter earnings release in late April.
The plan, outlined in a draft memo, states that the U.S. Department of Energy wants to use authorities under the Defense Production Act of 1950 and Section 202(c) of the Federal Power Act to ensure that certain "fuel-secure" plants at risk of premature closure remain operational.
The administration's plan was applauded by the coal and nuclear industries, which have pushed President Donald Trump to help counter a steady stream of recent and planned plant retirements.
