Duke Energy Kentucky reports coal burn, contract details

Duke Energy Kentucky bought 1 million tons of coal in the November 2011-April 2012 review period, with the top supplier being Patriot Coal Sales under three contracts where it took 133,936 tons, 106,854 tons and 44,606 tons.

The next biggest supplier was American Coal, with 118,043 tons of contract coal and 21,507 tons of spot coal. Duke Energy Kentucky, a unit of Duke Energy (NYSE: DUK), included these figures in a Sept. 12 report it filed with the Kentucky Public Service Commission in a twice-yearly fuel review case.

The actual burn during the six-month review period was 485,532 tons (representing Duke’s share of the plant capacity) at East Bend, with the plant having a capacity factor of 53.7% during the period, and a burn of 179,366 tons at Miami Fort Unit 6, with the unit having a capacity factor of 56.5%.

The long-term coal contracts in effect during the November 2011-April 2012 review period, that are to supply the East Bend plant, were:

  • Oxford Mining Co.-Kentucky LLC/Charolais Coal, from mines in western Kentucky, contract executed September 2007, expires March 31, 2013, calls for 213,000 tons in 2012 and 13,950 tons in 2013, with a 2011 price of $32.70/ton.
  • SMCC AGF Resources Sales, sourced from Allied Resources in western Kentucky, executed June 2009, ends Dec. 31, 2013, calls for 120,000 tons in 2012 and 300,000 tons in 2013, with a 2013 price of $54.75/ton.
  • Oxford Mining Co.-Kentucky, executed in May 2010, expired end of 2011, was for 300,000 tons in 2011.
  • Patriot Coal Sales, from Bluegrass complex in western Kentucky, executed in November 2010, expires Dec. 31, 2012, calls for 325,000 tons in 2012, with a 2012 price of $45/ton.
  • Patriot Coal Sales, from Highland mine in western Kentucky, executed in November 2009, expires Dec. 31, 2012, with a 2012 tonnage of 250,000 tons and a 2012 price of $46.50/ton.
  • Patriot Coal Sales, from Highland mine, executed in April 2011, expires Dec. 31, 2013, calls for 150,000 tons per year in 2012 and 2013, with a 2012 price of $50/ton.
  • Rhino Energy LLC, from Sands Hill mining operation in Ohio, executed in September 2010, expires Dec. 31, 2012, calls for 180,000 tons in 2012 at a 2012 price of $49/ton.
  • River View Coal LLC, from River View mine in western Kentucky, executed in January 2011, expires Dec. 31, 2013, calls for 220,000 tons per year in both 2012 and 2013, with a 2013 price of $53.25/ton.

There is only one contract shown for Miami Fort Unit 6. That is with American Coal, was executed in June 2005 and expires Aug. 31, 2015. It calls for 300,000 tons of contracted coal deliveries in 2012 out of the Galatia longwall mine in Illinois, with no tons shown in later years, and with a 2012 price of $53.50/ton.

As of April 30, Duke Energy Kentucky had a total of 348,793 tons of coal in inventory, or 45.3 days of supply. At East Bend, the coal inventory as of April 30 was 318,420 tons, or 49 days of supply, against an inventory target of 40 days. At Miami Fort Unit 6, the April 30 inventory total was 30,373 tons, or 25.3 days, against a 40-day target.

The utility said it isn’t in any current litigation with coal suppliers.

The Duke website said that East Bend is a 600-MW coal plant in Kentucky, that Duke Energy Kentucky owns 69% or 414 MW of the plant and that the rest is co-owned by Dayton Power and Light. Duke Energy Kentucky controls all of the 163-MW Miami Fort Unit 6 in Ohio.

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.