American Electric Power seeks bids for spot, term coal

American Electric Power Service Corp. (AEPSC), acting as agent for AEP Generation Resources (AEPGR), said Jan. 15 that it is soliciting coal supply bids for one or more power plants.

AEPGR is seeking spot delivery proposals for coal, FOB Conesville Plant in Ohio, rail or barge, beginning in the second quarter of 2014 and ending in the fourth quarter of 2014.

In addition, AEPGR is seeking term proposals for coal, FOB Conesville Plant, rail or barge, beginning in the second quarter of 2014 and lasting for a term of three or five years.

Under both contract terms, AEPGR is offering coal specs under both Specification A (includes over 11,800 Btu/lb, less than 5 lbs/mmBtu of SO2 and less than 9% ash) and Specification B (at least 11,000 Btu/lb, less than 5 lbs/mmBtu of SO2 and less than 8% ash). AEPSC didn’t give any figures on the tonnages of coal it is seeking under both alternatives.

AEPGR is open to alternative pricing structures or other innovative, value-added concepts. Proposals with alternative terms will be accepted. Accepted bids will be at AEPGR’s discretion.

Proposal packages must be received by AEPGR no later than 5 p.m., Jan. 23.

U.S. Energy Information Administration data shows that the Conesville power plant has long-term contracts with its two traditional suppliers, Ohio coal producers Oxford Mining and Buckingham Coal.

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.