American Electric Power (AEP) is seeking requests for proposal to supply more than 20 [million] tons of coal for its generating stations in multiple regions over a four-year period. AEP is seeking proposal for the following types of coal, delivery years and tonnages. The proposal deadline is August 14.
|Central Appalachian or Colorado Basin||150,000||3,500,000||2,500,000||1,500,000|
|Powder River Basin||1,000,000||5,000,000||5,000,000||3,000,000|
AEP has sold, retired or planned to retire dozens of coal-fired units in recent years, but the Columbus, Ohio-based utility still generates 47 percent of its power from coal, higher than the industry standard of closer to 30 percent. The coal portion of the generation mix was as high as 70 percent only a decade or so ago, according to reports.
AEP CEO Nick Akins has expressed some reservations about retiring too much coal and nuclear capacity too quickly, worrying about the impact on grid resiliency and fuel security. He is willing to close plants down, though, if the economics are too damaging.
The U.S. Energy Information Administration, meanwhile, reported last week that prices for Central Appalachian and Illinois Basin coal rose or stayed constant from the previous month. Powder River Basin coal fell slightly, according to the report.