The Cajun Electric Power Cooperative in Louisiana said its delivered prices for coal dropped because diesel fuel used to transport the coal costs half as much as last year.
Cajun Electric, Baton Rouge, said it paid 248.8 cents for a million British thermal units in June for a coal shipment from one supplier, while comparable coal from the same mine cost 252.7 cents a million Btus two months earlier.The delivered price on other coal shipments also dropped.
Cajun's coal, which is purchased from two Wyoming suppliers, is transported 1,130 miles by rail to St. Louis, where it's loaded into barges hauled to the utility's Big Cajun No. 2 station, New Roads, La. Tugboats for the waterway haul burn diesel fuel.
Marc Barker, Cajun's manager of fuel and transportation, said the price of diesel fuel oil has dropped to about 40 cents a gallon, down substantially
from prices of 75 cents to 80 cents a gallon in July 1985.
When the cost of operations or transportation drops, he said, it's a pass- through to us.
Cajun buys its coal under contract from Kerr-McGee Coal Corp. and Shell Mining Co.'s Triton Coal Co.
The utility told the Federal Energy Regulatory Commission that it paid 189.4 cents a million Btus in June for the Triton coal, compared with 191.3 cents a million in April.
The June shipment from the Kerr-McGee mine was priced at 248.8 cents a million Btus, down from 252.7 cents a million in April.
The coal is generally rated at 8,300 Btus to 8,600 Btus a pound, 0.4 percent sulfur and 5 percent to 6 percent ash.
In another region, the City Public Service Board of San Antonio, Texas, paid 175.7 cents a million Btus in June for Wyoming coal under contract, compared with 172.8 cents a million in February, based on the commission data.
The coal, rated at 8,289 Btus a pound, 5 percent sulfur and 8 percent ash, is used at the Deely power plant.
Another Texas utility, Houston Lighting and Power Co., reported it took delivery on two contract shipments in June and both were priced at 240.3 cents a million Btus. The coal, used at the Parish power plant, Richmond, Texas, came from mines in Montana and Wyoming.
Central Power & Light Co., Corpus Christi, Texas, reported that June coal shipments from a Colorado mine to the Coleto Creek station, Fannin, Texas, were priced at 165.7 cents a million Btus. That's much lower than the price on comparable coal delivered in March, 247.4 cents a million.
Central Power officials pointed out that the utility renegotiated its coal supply and transportation contracts earlier this year to lower the overall cost.
In Kentucky, the Big Rivers Electric Corp., Henderson, said coal from a
Kentucky contract supplier increased in June to 121 cents a million Btu, compared with 118.1 cents a million.
The June shipment, however, had a higher Btu value and was lower in ash content, accounting for the price difference.
The Cleveland Electric Illuminating Co. said June spot coal shipments from a Pennsylvania supplier dropped to 134.2 cents a million Btu, compared with an April price of 135.1 cents a million.
The spot shipments were generally rated at 13,000 Btu a pound, 2.4 percent to 2.6 percent sulfur and about 6 percent ash.
Contract coal delivered in June fell as well, to 140 cents a million Btu, compared with 149.7 cents a million in April. Those shipments had the specifications of 12,100 to 12,200 Btu a pound, about 3.8% sulfur and 9% to 10% ash.