Power giant goes coal shopping

AMID all the doom and gloom of recent coal industry headlines, one of the nation’s largest coal customers says it is in the market for up to 60,000 tons of thermal coal per month.
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Courtesy, American Electric Power

Justin Niessner

American Electric Power announced this weekend it was seeking offers for the supply of high British thermal unit, mid-sulphur coal for one or more of its generating plants.

The utility said it was seeking spot proposals for a requirements agreement for coal shipments by barge or rail starting in January 2013 and running through December 2013.

Proposals with alternative terms will be accepted and bids will be at American Electric’s discretion.

American Electric delivers electricity to more than 5 million customers in 11 states where it owns nearly 38,000 megawatts of generating capacity.

The company also owns the nation’s largest electricity transmission system, a nearly 39,000-mile network that includes more 765 kilovolt extra-high voltage transmission lines than all other US transmission systems combined.

Its transmission system directly or indirectly serves about 10% of the electricity demand in the Eastern Interconnection – the interconnected transmission system that covers 38 eastern and central US states and eastern Canada – and approximately 11% of the electricity demand in ERCOT – the transmission system that covers much of Texas.

American Electric proposal packages for coal supply must be submitted by September 26.

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