Ample supply of natural gas, a major power plant fuel, has forced down wholesale power prices in deregulated markets through the United States, leaving power generators a dismay economic outlook, a recent report shows.

Low demand has led to closing of several coal plants on the East Coast, but the grid there still has excess capacity, further depressing electricity prices, newspaper The Houston Chronicle reported Wednesday, quoting a report issued recently by Moody's. Moody's gives the U.S. unregulated power sector a negative investment rating, predicting that the low natural gas prices, combined with weak demand and a surplus of capacity, will leave power companies struggling for profits. However, the impact of lower natural gas prices on wholesale electricity is less evident in Texas largely due to a stronger economy that results in higher demand for power supplies in the state, according to the report. Demand for electricity has grown with Texas' economy and population, leading regulators and grid planners to discuss options for adding additional generation. Endi

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