A method for preparing coal-derived fuel compositions while simultaneously producing electricity by utilizing a novel co-generation configuration employing the hydrodisproportionation of coal. Hydrodisproportionation is the short residence time decomposition and volatilization of coal to produce liquid coproducts, minimizing char and gas production without utilization of external hydrogen, that is, hydrogen other than that contained in the coal feedstock. The char produced is gasified to simultaneously produce steam for electrical power generation and syngas to produce methanol in a once-through process. The methanol purge gas is used as a fuel gas for a gas-driven power generating turbine. The waste heat from the power generation is used as the process heat for hydrodisproportionation.