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KU, LG&E award 120,000-ton coal supply contract to Arch

andLouisville Gas and Electric Co.awarded a 120,000-ton coal supply contract to , which will commenceJan. 15, 2017, and end Dec. 31, 2017, according to a filing with the KentuckyPublic Service Commission.

Thecontract is for approximately 10,000 tons of crushed bituminous coal per month,from Arch Coal's affiliate ACITygart Valley LLC. The coal will be delivered f.o.b. barge at$33.35/ton, to Kanawha River Terminal, Ceredo, milepost 314.6 on the Ohio River.

Thecoal is spec'd at monthly weighted averages of 10,850 minimum Btu, 10.00 lbs/MMBtumoisture, 2.03 lbs/MMBtu maximum sulfur dioxide and 21.20 lbs/MMBtu ashcontent. The contract is through Arch's sales unit,

KentuckyUtilities and Louisville Gas and Electric Company are units of The coal is being bought forthe Ghent, Mill Creek and Trimble County generating stations.