Houston — East Kentucky Power Cooperative bought over 1 million st of coal worth over $32.54 million, or an average base price of $32.31/st, from four suppliers, while Kentucky Power bought 120,000 st of coal and amended another contract, according to state regulatory filings.
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EKPC told the Kentucky Public Service Commission it signed a two-year deal for 480,000 st of 11,450 Btu/lb barge coal from Alliance Coal at a base price of 157.2 cents/MMBtu, or $36/st FOB barge. Total cost for the coal, which had a maximum sulfur level of 5.2 lbs SO2/MMBtu and max chlorine level of 0.12%, was worth over $17.28 million.
Coal deliveries, which are loaded at the River View dock on the Ohio River, started Jan. 1 and will continue through Dec. 31, 2022, to EKPC's Spurlock Station's Unit No. 1 and No. 2 near Maysville, Kentucky, at an annual rate of 240,000 st.
EKPC also agreed to a two-year supply deal with Foresight Coal Sales for 480,000 st of 11,400 Btu/lb worth $13.68 million, or a base price of $28.50/st FOB barge. Beginning Jan. 1, Foresight will annually ship 240,000 st of coal from one of its three Illinois mines, with a maximum sulfur level of 5.5 lbs SO2/MMBtu and max chlorine level of 0.25%. The coal will be loaded at the Sitran Dock on the Ohio River and delivered to the Spurlock Station's Unit No. 1 and No. 2.
The cooperative also signed barge contracts with CCU Coal and Construction and River Trading Company.
CCU supplied roughly 17,000 st of 11,200 Btu/lb barge coal from one of its four Ohio mines between Nov. 19 and Dec. 31, 2020 at an average base price of $39.54/st FOB barge. The coal, which had a maximum sulfur level of 9.75 lbs SO2/MMBtu, was loaded at Docks Creek on the Big Sandy River and shipped to the Gilbert Unit No. 3 and Unit No. 4 at Spurlock Station near Charleston Bottoms, Kentucky.
EKPC also bought 30,000 st of 11,500 Btu/lb coal from River Trading Company at an average base price of $30.29/st. Deliveries were scheduled between Nov. 3, 2020, and Jan. 18, 2021, and were loaded on the River Point Terminal on the Kanawha River and shipped to Gilbert Unit No. 3 and Spurlock Unit No. 4. The coal came from the Job No. 5 surface mine in Johnson County and had a maximum sulfur level of 6 lb SO2/MMBtu.
Kentucky Power signs one-year deal with Javelin
Kentucky Power also told the PSC it signed a one-year supply deal with Javelin Global Commodities for 120,000 st of Central Appalachia barge coal at a base price of $50.50/st FOB barge.
Deliveries for the coal, which is loaded at the Quincy Dock or the Marmet Dock on the Kanawha River, started on Jan. 1 and will continue through Dec. 31, to the utility's Mitchell Plant near Moundsville, West Virginia. The coal, which had a heat content of 12,000 Btu/lb and sulfur level of 1.67 lb SO2/MMBtu, will come from the Point Lick Mine in Kanawha County, the Alloy Mine in Fayette County or the Progress (Twilight) Mine in Boone County.
A subsidiary of American Electric Power, Kentucky Power amended a contract with Contura Coal Sales to extend a previous deal by one year. The original agreement called for deliveries of 135,000 st in 2019 and 310,000 st in 2020, but roughly 148,000 st was delivered in 2020. The two parties agreed for the remaining 161,000 st of Central Appalachia 12,000 Btu/lb barge coal to be delivered in 2021 at a base price of $59/st FOB barge.
According to the two filings, Kentucky Power is set to receive 281,000 st of barge coal in 2021 from Javelin and Contura at an average base price of $55.37/st, or a total value of $15.56 million.