Southern Company seeks up to 1.8 mil st of Q1 2019 subbituminous PRB coal

November 12, 2018, 8:28 pm | Admin

Houston — Southern Company is seeking up to 1.8 million st/year of subbituminous Powder River Basin coal on behalf of its subsidiaries for delivery in the first quarter of 2019, the utility holding company said late Friday in a coal solicitation.

The company is seeking as much as 600,000 st/month, it said.

The coal must have a sulfur content of less than 1.2 lb SO2/MMBtu.

Offers from all BNSF and Union Pacific origins will be considered and prices should be quoted $/st FOB rail at the proposed loading facility.

Negative calorific value adjustments will be based on the total delivered price, including transportation costs, while positive calorific value adjustments will be based on the FOB mine price.

All proposals must be accompanied with proximate analysis, including sulfur, calorific value, grindability, mineral/ash content, trace elements and ash fusions.

Faxed or mailed bids will not be considered. Only electronic bids, submitted through the company's Coal Internet Bid System, will be accepted through noon EST (1700 GMT) November 16. All offers must remain valid through November 30.

Offers should be submitted via CIBS under the RFP folder "Southern Co - PRB Q1 2019 Solicitation."

The holding company owns four utilities: Alabama Power, Georgia Power, Gulf Power and Mississippi Power, The four took delivery of 34.51 million st of subbituminous and bituminous coal in 2017, according to data from the US Energy Information Administration.

Over 20.37 million st of it was subbituminous coal, the price of which averaged $34.78/st, while it had a heat content of 8,644 Btu/lb and sulfur level of 0.7 lb SO2/MMBtu.

Over 99.6% of the subbituminous coal came from Wyoming, including more than 70%, or 10.05 million st, from Arch Coal's Black Thunder mine and Peabody's North Antelope Rochelle mine, which are both located in southern PRB. The remaining 78,905 st came from Montana.

Last modified on November 13, 2018, 8:31 pm | 623