EKPC able lately to keep coal inventory largely in check

East Kentucky Power Cooperative did reasonably well during the November 2012-April 2013 period in terms of coal inventory, except for unit outages at the Spurlock plant, ending the period at 932,039 tons, or 42 days of supply.

EKPC, in an Aug. 29 fuel report filed at the Kentucky Public Service Commission in a twice-yearly fuel case, said that this 42 days of supply was not much over its 25-40-day target range. The inventories by plant were: Dale, 17,641 tons (seven days of supply); Cooper, 85,220 tons (23 days); and Spurlock, 829,178 tons (51 days).

The Spurlock inventory was up in part due to depressed generation due to forced unit outages in February and April.

EKPC’s coal suppliers during the period included Perry County Coal, Mountainside Coal, B&W Resources, Jamieson Construction, Oxford Mining and Williamson Energy.

Listed in the filing are EKPC’s term contracts in effect during the six-month review period. The two newest were both executed in December 2012 for supply to the Spurlock plant and are with:

  • Peabody COALSALES, out of Somerville and Wild Boar mines in Indiana, contract term is two years, 210,000 tons per year; and
  • B&N Coal, various Ohio mines, term of three years and two months, 92,000 tons/year.

EKPC noted that its only coal contract litigation dates back to 2008 and is with bankrupt Appalachian Fuels LLC, with the utility still seeking recovery of alleged damages due to halted coal deliveries by this Larry Addington company.

EKPC said it issued four formal coal solicitations during the November 2012-April 2013 period, with three for spot coal and one for term coal. The term coal solicitation was issued April 15 for Spurlock Units 1 and 2. It covers coal deliveries in the January 2014-December 2016 period, and is for a total of 1.08 million tons of coal with 7#SO2/mmBtu. There were 14 responses. Bids are still being evaluated.

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.