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Kentucky Utilities awards coal contract to Alliance for 1.5 million tons

Alliance Resource Partners LP signed a deal with Louisville Gas and Electric Co. and Kentucky Utilities Co. to provide 1.5 million tons of coal.

The delivery term began Jan. 1 and will continue through Dec. 31, 2018. The contract, obtained from the Kentucky Public Service Commission, provides for 500,000 tons to be delivered in 2017 and 1 million tons in 2018.

The coal is to be delivered f.o.b. railcar. It is spec'd at a minimum 11,500 Btu/lb; maximum 8.00 lbs/MMBtu moisture and 11.30 lbs/MMBtu ash.

The coal is priced at between $37.00 and $37.50 in 2017 and $38.50 and $39.00 depending on the delivery point.