MARKETS

AEP seeking coal bids

OHIO-based utility American Electric Power is seeking proposals for up to 1 million tonnes of Illinois Basin and Northern Appalachian coal, for deliveries beginning as soon as next month, to power its generation stations.

Donna Schmidt

In the solicitation, which is the company’s second in two months, AEP said it was looking for spot delivery proposals for up to 500,000 tonnes of coal free-on-board barge beginning in December 2013 and ending in June 2014.

It is also seeking the same tonnage, FOB barge or FOB cardinal plant, beginning in January 2014 and extending through the year.

AEP’s specifications for the first order (December-June) includes 11,500 British thermal units per pound (minimum 10,800Btu/lb), 11% moisture (14% max), 8% ash (11% max), 5 pounds of sulphur dioxide per million British thermal units (5.8lb max), 50 hardgrove grindability (45 max), less than 0.18% dry chlorine (0.2% max) and 2200 degrees F ash fusion temperature (H=1/2 W, min 2000 and max 2400 degrees F).

Specifications for the second order (January-December 2014) are 12,000Btu/lb (11,800Btu/lb min), 8% moisture (9.5% max), 10% ash (12% max), greater than or equal to 3.5lb SO2/MMBtu (7.5lb max), 45 hardgrove grindability (40 max) and 2100 degrees F ash fusion temperature (H=1/2 W, 2000 degrees F min).

The utility confirmed it was open to alternative pricing structures as well as other “innovative, value-added concepts” and would accept bid proposals with such terms.

Bids must be made quickly – they are due by November 11 by 5pm local time and can be submitted by email, fax or USPS mail.

AEP provides power to about 5.3 million customers in 11 US states and owns approximately 38,000 megawatts of generating capacity nationwide.

The Columbus-based company’s utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma and Southwestern Electric Power Company (in Arkansas, Louisiana and east Texas).

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