January 18, 2019 - Kentucky Power, a subsidiary of American Electric Power, bought 160,000 st of Central Appalachia barge coal from Blackjewel Marketing for 2019 deliveries, according to a new regulatory filing made public Thursday.

The crushed, raw bituminous coal will be delivered starting January 1, 2019, and will continue through December 31, according to the filing published by the Kentucky Public Service Commission.

The deal, which was for 13,333/st of coal/month, sold for $61.07/st FOB barge at delivery point.

The CAPP coal will be delivered FOB barge at the Marmet dock (mile post 69.1) on the Kanawha River and delivered to the 1,560-MW Mitchell coal-fired power plant on the Ohio River in Moundsville, West Virginia.

Specifications for the contract were a heat content of 11,900 Btu/lb, sulfur content level of 1.68 lbs SO2/MMBtu, moisture content of 8% and ash content of 12.5%.

All shipments will be sampled and analyzed by the seller and any coal with an average heat content less than 11,700 Btu/lb, sulfur content above 1.75 lbs SO2/MMBtu, maximum moisture content above 10% or maximum ash content higher than 14.5% will be rejected, according to the filing.

The coal sold by Blackjewel will come from Lexington Coal Company's Mine No. 6 surface mine in Boone County, West Virginia. The mine, which its coal will come from the Stockton seam, was acquired from Coal River Mining in May 2018.

Roughly 1.77 million st of barge coal was delivered to the Mitchell plant in the first 10 months of 2018, but it was the first coal sold by Blackjewel Marketing to Kentucky Power, according to data from the US Energy Information Administration. The delivered coal had an average heat content of 12,172 Btu/lb and sold for $62.73/st, according to the data.

Blackjewel Marketing, a joint venture between Blackjewel, Javelin and Uniper, has sold 12.52 million st of coal to utilities in the first 10 months of 2018, including 11.76 million st mined from Wyoming. The remaining 755,899 st of coal was mined from Kentucky, Virginia and West Virginia and was sold to Duke Energy, Dominion Energy and WestRock, a paper and packaging company.