Southern Co. seeks bids for PRB coal in the back half of 2013

Southern Co. Services, a unit of Southern Co. (NYSE: SO), went out for bids on June 6 for compliance (up to 1.2 lbs/mmBtu of SO2) sub-bituminous coal to meet a portion of the short-term requirements at its plants (Miller and Scherer) fired by Powder River Basin coal.

The company is considering the purchase of up to 23 trains/month or (approximately 350,000 tons/month) for July-December 2013 deliveries.

  • OPTION 1 – Up to 23 trains/month for Q3 2013
  • OPTION 2 – Up to 23 trains/month for Q4 2013

The seller is requested to submit individual bids for OPTION 1 and OPTION 2. Seller is also requested to submit pricing based on fixed price f.o.b. mine.  This solicitation is for internet bids only, with bids due by June 13.

The buyer is looking for suppliers to provide any flexibility/option tons in scheduled shipments. If suppliers desires to provide any flexibility, the conditions of the flexibility can be outlined under the comment section of the bid. It is not the intent of Southern to resell or remarket flexible/option quantities.

Offers from all Burlington Northern Santa Fe Railway (BNSF) origins will be considered (the BNSF serves all of the mines in the PRB). Shipments must be loaded in electro-pneumatic quick dump hopper cars. Unit train shipments will be scheduled by the SCS Fuel Department after seller’s transportation coordinator has received complete purchase documentation. Seller must be prepared to load unit trains 7 days per week, 24 hours per day.

Appropriate economic consideration will be given for sulfur content in the evaluation. For all units with SO2 scrubbers in service during the term specified in the solicitation no sulfur adjustments shall apply to those scrubbed units and purchaser will take this into consideration when evaluating bids.

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.