Subsidiaries of the US coal company entered into six agreements from four coal regions for up to 98 million tons of coal that would be used at AEP generating plants in six states.

The settled lawsuits involved the American Electric unit Indiana Michigan Power Co. and two Peabody coal suppliers - Cabbala Coal Co. and Powder River Coal Co. No details on the settlements were given but the supply agreement between Indiana Michigan and Powder River Coal has been reinstated.

"We're pleased to resolve the issues that were in dispute and to dispose of this litigation in a rational manner," said AEP chairman, president and chief executive officer Michael G. Morris.

"Reaching new purchase and sales agreements is an added bonus. Peabody is a long-time supplier of coal to AEP, and we value our business relationship with such a stable, reliable company."

The new agreements include coal supplies from the Powder River Basin, Northern Appalachia, Central Appalachia and Midwest, for contract terms that extend as long as 2014.

The transactions involve multiple production, transportation and consumption locations – that Peabody and AEP are “uniquely qualified to enter into," said Peabody chairman and chief executive officer Irl F. Engelhardt.

"The transactions demonstrate creative solutions that can be achieved by large- scale energy companies. We're pleased to reinforce the strong relationship between the world's largest coal company and one of America's largest coal consumers."