East Kentucky Power Co-Op Reduces Contracts With Four Coal Suppliers
April 1, 2020 - East Kentucky Power Cooperative reduced its monthly delivery amounts with four barge coal suppliers by 20%, or a combined 16,000 st/month, according to a regulatory filing made public Tuesday.
The Winchester, Kentucky-based utility said it will reduce the amount of coal to be delivered to its Gilbert and Spurlock power plants, starting April 1, and will continue until further notice, according to filings published by the Kentucky Public Service Commission.
Under the contracts with its suppliers, EKPC has the right to increase or decrease its base monthly delivery amount by 20%.
EKPC said starting April 1, it would receive 24,000 st/month from CCU Coal and Construction, a reduction of 6,000 st/month. The two parties are in a three-year barge coal contract that started January 1, 2019, for 360,000 st/year at a base price of $1.683/MMBtu ($38.71/st for 11,500 Btu/lb coal).
EKPC reduced its supply contract with Contura Energy by 4,000 st/month, or 20%, to a new delivery rate of 16,000 st/month. The companies are in the final year of a three-year barge coal deal, which started January 1, 2018, that was for 240,000 st/year at a base price of $1.50/MMBtu in 2018, $1.5385/MMBtu in 2019 and $1.5769/MMBtu in 2020.
EKPC also lowered its supply agreement with River View Coal by 4,000 st/month to 16,000 st/month. The two companies are also in the last year of a six-year barge coal contract that started January 1, 2015, for 240,000 st/year, including a base price of $1.6522/MMBtu in 2020.
EKPC also lowered its supply contract with Alliance Coal by 2,000 st, or 20%, to 8,000 st/month. The two parties are in the third year of a three-year barge coal deal that started January 1, 2018, that was originally signed for 120,000 st/year at $1.5652/MMBtu in 2018, $1.6087/MMBtu in 2019 and $1.6522/MMBtu in 2020.