Louisville Gas and Electric reports latest coal buying details

During the latest fuel review period for Louisville Gas and Electric, the utility shut out the last coal-fired capacity at its Cane Run power plant and relied heavily on the replacement, gas-fired Unit 7 at Cane Run.

Louisville Gas and Electric filed on Feb. 19 with the Kentucky Public Service Commission the data needed for its latest fuel cost review case.

For the May-October 2015 fuel review period, the plants ran this way. Trimble County values reflect 100% of the unit. Trimble County 2 is owned by sister utility Kentucky Utilities (60.75%), LG&E (14.25%) and two other parties. Capacity factor calculations for Cane Run Units 4 and 5 include operating hours from May 1, 2015, through June 30, 2015, when those units were shut.

  • Cane Run, 63,703 tons coal burned, 13,133 tons coal received, 116,705 net MWH generation, 24.7% capacity factor;
  • Mill Creek, 1,715,453 tons burned, 1,812,459 tons received, 3,900,893 net MWH, 60.3% capacity factor;
  • Trimble County High Sulfur (HS), N/A, 1,853,673 tons coal received, N/A, N/A;
  • Trimble County Powder River Basin (PRB), N/A, 312,204 tons received, N/A, N/A;
  • Trimble County Unit 1, 734,238 tons burned, N/A, 1,566,369 net MWH, 69.5% capacity factor; and
  • Trimble County Unit 2, 1,239,538 tons burned, N/A, 2,890,778 net MWH, 89.4% capacity factor.

During the review period, Cane Run Unit 4 and Cane Run Unit 5 ceased operation as of the end of June 2015. Prior to the review period, Cane Run Unit 6 also ceased operation. All coal generation at Cane Run has now ceased. The addition of the new-gas-fired Cane Run Unit 7, its position as first in dispatch, resulting from high efficiency and the current price of natural gas, has lessened the operations of coal units within the fleet, the filing noted.

 As of Oct. 31, 2015, the coal inventories were:

  • Mill Creek, 793,645 tons, which is 54 days of supply against a target of 20-43 days; and
  • Trimble County, 264,122 tons, which is 49 days against a target of 21-44 days. Trimble County coal inventory includes both high sulfur coal, which is used in Units 1 and 2, and PRB coal, which is used only in Unit 2.

Coal suppliers during the review period were:

  • Alliance Coal LLC, 674,554 tons, Contract;
  • Alliance Coal LLC, 1,469,636 tons, Contract;
  • Alliance Coal LLC, 163,579 tons, Contract;
  • Alliance Coal LLC, 169,680 tons, Contract;
  • Arch Coal Sales, 7,856 tons, Spot;
  • Armstrong Coal, 144,892 tons, Contract;
  • Armstrong Coal, 220,466 tons, Contract;
  • Armstrong Coal, 173,924 tons, Contract;
  • Armstrong Coal, 7,957 tons, Contract;
  • Foresight Coal Sales LLC, 304,191 tons, Contract;
  • COALSALES LLC, 32,554 tons, Contract;
  • Peabody COALTRADE LLC, 12,666 tons, Spot;
  • Rhino Energy LLC, 62,033 tons, Contract;
  • River Trading Co., 1,620 tons, Spot;
  • White Oak Resources LLC, 102,446 tons, Contract; and
  • White Oak Resources LLC, 131,209 tons, Spot.

The report lists the coal contracts in place during the review period, including a 2008 deal with Alliance Coal LLC for coal out of the River View mine that was due to expire at the end of 2015 and called for 2 million tons in 2015.

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.