Big Rivers seeks bids for spot, plus 2013-2017 term coal

Big Rivers Electric, with power plants located in western Kentucky, is taking bids until Oct. 5 for steam coal and petroleum coke for the Wilson, Coleman, Green, Reid, and Station Two (Henderson) generating stations.

Big Rivers Electric (BREC) said in a Sept. 14 bid announcement that it is seeking spot deliveries starting on or about Oct. 15, 2012, and running through Dec. 31, 2012. It will also consider term offers for years 2013 through 2017, or some portion thereof. “However, should you desire to present an alternate plan, you are encouraged to do so,” it added. “BREC will consider varying qualities of coal and alternative fuels, pricing structures, or other innovative concepts that would present a value-added benefit to both parties.”

BREC is seeking 50,000 to 100,000 tons of spot solid fuel for the remainder of 2012, and up to 500,000 tons of coal per year for years 2013 through 2017. Bidder may offer any fuel (including petroleum coke, fuel blends or other alternative fuels) that it would like to offer for sale. Bidder is invited to submit more than one quotation for each different fuel spec offered. Fuel should be priced F.O.B. barge, truck or generating station(s).

Coal can be offered under five different sets of specs, called specs A, B, C, D and E. For example, the A specs include a 2.5 lb-5.5 lb/mmBtu range for SO2 and a minimum of 11,800 Btu/lb. The Big Rivers plants are mostly scrubber-equipped these days, so high-sulfur coal and petcoke are not major issues. The 2.5 lbs/mmBtu SO2 spec is the minimum under all of the coal categories and also under the single set of petcoke specs.

Notable is that Big Rivers is in the middle of a coal contract lawsuit with Oxford Mining Co.-Kentucky LLC over a Big Rivers termination on March 2 of an 800,000-tons-per-year contract that had been due to run through 2015. The details from that terminated contract, and other long-term contracts held by Big Rivers, are included in a Sept. 11 fuel cost filing that Big Rivers lodged at the Kentucky Public Service Commission. One contract with Foresight Coal Sales LLC is shown to have expired on June 30, and another with Allied Resources Inc. expired at the end of 2011. Here are the ongoing contracts, tonnages and expiration dates:

  • Patriot Coal Sales LLC, expires end of 2012, calls for 108,000 tons in 2012, down from 1 million tons in 2011.
  • Alliance Coal LLC, expires end of 2013, calls for 750,000 tons per year in each of 2012 and 2013.
  • Allied Resources was the initial supplier, then contract assigned in March to Sebree Mining LLC, expires end of 2015, calls for 750,000 tons in 2012, 960,000 tons in 2013, 800,000 tons in 2014, 890,000 tons in 2015, and, even though the contract expiration is given as the end of 2015, there is 900,000 tons mentioned for 2016.
  • Armstrong Coal Co. Inc., end of 2012 expiration, calls for 500,000 tons in 2012.
  • Patriot Coal Sales, began in January and runs through the end of 2015, calls for 964,000 tons in 2012 and then 700,000 tons per year in each of 2013, 2014 and 2015.
  • Armstrong Coal, contract began in January and runs through the end of 2015, with the contract calling for 350,000 tons in 2012, 400,000 tons in 2013, 800,000 tons in 2014 and 875,000 tons in 2015.
About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.