Kentucky Power, a subsidiary of American Electric Power, bought 250,000 st of Central Appalachian barge coal worth $14.75 million from Contura Energy, according to a regulatory filing made public Wednesday.
The utility signed a one-year deal with Contura Energy at a base price of $59/st FOB barge for crushed, partially washed bituminous coal that will be delivered from January 1, 2021, through December 31, 2021, according to the filing published by the Kentucky Public Service Commission.
The CAPP coal will be delivered FOB barge at the Marmet dock or the Mammoth dock on the Kanawha River and delivered to the 1,560-MW Mitchell coal-fired power plant on the Ohio River in Moundsville, West Virginia.
Specifications for the contract were a heat content of 12,000 Btu/lb, sulfur content level of 1.67 lb SO2/MMBtu, moisture content of 10% and ash content of 12%.
All shipments will be sampled and analyzed by the seller and any coal with an average heat content of less than 11,750 Btu/lb, sulfur content above 1.75 lb SO2/MMBtu, moisture above 10% or ash content higher than 14% will be rejected, according to the filing.
The coal sold by Contura will come from its Slab Camp, Black Castle and Republic Energy mines, which are located in Kanawha, Boone, Raleigh and Fayette counties, West Virginia.
In February, the utility signed a pair of two-year deals with Contura for 2019 and 2020 deliveries totaling 775,000 st.
The shipments in the first deal will involve 135,000 st in 2019 at $58/st FOB barge and 310,000 st in 2020 for $59/st FOB barge.
The second deal with Contura was for 195,000 st in 2019 and 135,000 st in 2020, at a cost of $63/st FOB barge.
The only difference between the specifications for two deals in February was the rejection limit for moisture content. For the first deal, any coal with moisture content above 10% will be rejected, but the second deal’s moisture content rejection limit is 11%.
— Tyler Godwin, email@example.com
— Edited by Keiron Greenhalgh, firstname.lastname@example.org