Dayton Power and Light seeks offers for 2014 and 2015 coal supply

Dayton Power and Light (DP&L) said April 9 that it has issued a Request for Proposals (RFP) for coal for use at its two Ohio River stations, J.M. Stuart and Killen, in Ohio.

DP&L is seeking proposals for coal delivery for quantities up to one million tons per year for calendar years 2014 and 2015. Proposals of less than one million tons will be considered. DP&L said it is interested in offers for all types of coal.

All proposals submitted in response to this RFP must be received by DP&L no later than 12 p.m. Eastern on April 16.

DP&L receives coal via barge at two stations: J.M. Stuart Station, located near Aberdeen, Ohio, at Ohio River milepost 404.5; and Killen Station, located near Wrightsville, Ohio, at Ohio River milepost 389.6. DP&L wants proposals for both stations, FOB Barge and/or FOB Railcar.

Coals from any sources not previously burned by DP&L may be subject to test burns. Bidder must be willing to warrant that there are reserves equivalent to the total required to supply the tonnage and quality for the proposed term. 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 specifications and shipping locations.

DP&L requests pricing for volume flexibility of 10%-25% for any term offered. Bids should include a price for a fixed volume and a separate price for coal offered with a specified percentage of volume flexibility.

DP&L has informed PJM Interconnection that the coal-fired Hutchings Unit 4 has incurred damage to a rotor and will be deactivated June 1, 2013, and that the remaining Hutchings coal units will no longer be operated after May 2013 and will be deactivated by June 1, 2015, said parent DPL Inc. in its Feb. 27 annual Form 10-K report. Hutchings is a 365-MW (summer) coal plant, owned entirely by DP&L, that is located at Miamisburg, Ohio. Its retirement, due to age and new emissions control burdens, has been expected for some time. DPL Inc. is a unit of AES Corp. (NYSE: AES).

Also, the Public Utilities Commission of Ohio (PUCO) has picked consultant Energy Ventures Analysis, which did last year’s audit of the fuel buying of DP&L, to do this year’s audit. The commission in January went out with a request for proposals for a party looking to be the auditor on the 2012 fuel buying, with EVA picked as the winner and approved by the commission on Feb. 13. Energy Ventures needs to submit its draft audit report to PUCO staff by May 30, and file its final audit report by June 14. Last year’s audit by Energy Ventures raised issues with DP&L’s coal optimization program, where it buys and sells coal positions on a daily basis if it thinks it can make money at it. The commission on Jan. 23 approved a stipulation agreed to by DP&L with other parties that places certain limits on that fuel optimization program.

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.