Dayton Power and Light seeks Q1 2013 spot coal for two plants

Dayton Power and Light (DP&L) said Oct. 26 that it has issued a Request for Proposals (RFP) for coal for use at its two Ohio River plants in Aberdeen and Wrightsville, Ohio.

DP&L is seeking proposals for coal delivery for quantities up to 250,000 tons, with delivery in the January-March 2013 period. Proposals with alternative quantities will be considered. DP&L is interested in offers for all types of coal. All proposals must be received by DP&L no later than 5 p.m. Eastern on Nov. 9.

The coal is for J.M. Stuart, located near Aberdeen, Ohio, at Ohio River milepost 404.5; and Killen, located near Wrightsville, Ohio, at Ohio River milepost 389.6. DP&L requests proposals for both stations, FOB Barge and/or FOB Railcar. DP&L is interested in offers of all types of coals that the respondent may have available, including offers that represent NYMEX/OTC contract quality specs and shipping locations.

DP&L said Sept. 19 that it had issued an RFP for these same plants for delivery during calendar year 2013 and 2014. DP&L was seeking proposals for delivery of up to 1 million tons in 2013 and up to 1.5 million tons in 2014.

DP&L was able to use in 2011 a lot of relatively cheap high-sulfur coal at the scrubbed Killen and Stuart plants, said an audit of DP&L’s fuel procurement. The audit, written by consultant Energy Ventures Analysis, was filed April 27 at the Public Utilities Commission of Ohio.

Stuart has four units with a total capacity of 2,308 MW. Retrofits of flue gas desulfurization on all four units were completed in 2008. All coal to this station is delivered by barge. This station consistently burns more than 6 million tons per year, EVA noted. The Stuart scrubbers are designed for coals with an SO2 content up to 7.22 lbs/MMBtu. However, given the design of the boilers, DP&L did not assume a complete switch to higher sulfur coals because of concerns over slagging and fouling with that new coal, EVA reported.

Killen consists of one 600-MW coal unit. FGD was retrofitted on Killen in 2007. All of the coal consumed by Killen is delivered by barge. In three of the last five years, this plant operated at plus 75% capacity factors. Coal burn is typically about 1.8 million tons per year. Because of its ability to burn 100% high-sulfur coal, Killen has had lower fuel costs than Stuart and has been operating at higher capacity factors despite a higher heat rate, EVA noted.

DP&L is the principal subsidiary of DPL Inc., which in turn is controlled by AES Corp. (NYSE: AES).

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.