Virginia Electric coal burn around 10 million tons in year ending June 30

Virginia Electric and Power d/b/a Dominion North Carolina Power, bought and burned about 10 million tons of coal in the year ended June 30, beginning and ending the period with about 1.8 million tons of coal in inventory.

That is according to fuel cost testimony that the utility, which is a unit of Dominion Resources (NYSE: D) and does business as Dominion Virginia Power in its main service state of Virginia, filed on Aug. 29 at the North Carolina Utilities Commission.

The filings, by officials like Director-Fuels Gregory Workman, lay out various statistics about the utility’s fuel consumption and also about its purchases of power from various contracted independent power producers.

The utility said that in the one-year period ended June 30, 33.4% of its electricity came from nuclear, 25.2% from coal, 23.8% from power purchases and 17.6% from a combination of gas, oil and hydro.

Workman noted that natural gas prices are higher than they were last year, but still low by historic standards. The average price of Central Appalachia coal, a mainstay fuel source for the utility’s Virginia power plants, fell from $57.01/ton in July 2012, to $56.55/ton in July of this year, Workman reported.

Much of the fuel report was devoted to data for June 2013 alone. For example, in June, Dominion’s Yorktown plant in Virginia took 23,800 tons of contract coal at an average cost of $102.41/ton, its Chesapeake plant in Virginia took 11,654 tons of contract coal at $111.22/ton, and its Mt. Storm plant in West Virginia took 339,704 tons of contract coal at $61.65/ton.

Note that the fully-scrubbed Mt. Storm plant is within the Northern Appalachia coalfields, so it can take cheaper high-sulfur coal than the other named plants, which are in the Norfolk, Va. Also, the costs to transport that coal to Mt. Storm are much lower than with the other Virginia plants, except for the new Virginia City Hybrid Energy Center, which is within the Central Appalachia coalfields. It took 55,597 tons of contract coal at Virginia City in June at an average cost of $43.12/ton.

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.