Cardinal Operating Company Seeks Bids For Coal

Rhea-AI Summary

On June 30, 2020, Cardinal Operating Company (COC), on behalf of AEP Generation Resources Inc. (AEPGR), announced its request for bids to supply coal to Cardinal Power Plant Units 1, 2, and 3. Proposals for spot coal delivery will start in Q4 2020 and last up to 3 months, while term coal delivery will begin in Q1 2021 for up to 3 years. Bids must be submitted by 5 p.m. on July 13, 2020. AEP operates one of the largest electricity transmission systems, serving 5.5 million customers across 11 states.

Positive

• AEPGR is actively seeking to secure coal supply for its power plants, indicating ongoing operations.
• The bid process allows for flexible coal delivery terms, which may optimize supply logistics.

Negative

• None.

COLUMBUS, Ohio, June 30, 2020 /PRNewswire/ -- Cardinal Operating Company (COC) on behalf of AEP Generation Resources Inc. (AEPGR), an unregulated wholly owned subsidiary of AEP Energy Supply, LLC, is seeking bids for the supply of coal to Cardinal Power Plant Units 1, 2, and 3. AEP Energy Supply, LLC, which owns Cardinal Unit 1, is a wholly owned subsidiary of American Electric Power (NYSE: AEP), and Buckeye Power, Inc. (BPI), which owns Cardinal Units 2 and 3, is a corporation not for profit organized and existing under the laws of the state of Ohio and engaged in the generation and transmission of electric energy in Ohio for distribution and use by its membership.

Proposals for spot coal are being sought for delivery beginning Q4 2020 and lasting up to 3 months. Proposals for term coal are being sought for delivery beginning Q1 2021 and lasting up to 3 years. AEPGR and/or BPI may choose to individually transact on a specific year, or years, contained within a term proposal. Delivery via FOB Barge and/or FOB Truck Cardinal Plant.

Proposal packages must be received no later than 5 p.m., Monday, July 13, 2020. Proposals can be submitted by e-mail to jdhenry@aepes.com, or delivered in an envelope marked "COC RFP- COAL PROPOSAL" to COC RFP- COAL PROPOSAL, Attn: Jim Henry, AEP Energy Supply, 1187 Sleeping Meadow Drive, New Albany, OH, 43054. Proposals are to be kept open for acceptance by AEPGR and/or BPI until 5 p.m., Friday, August 14, 2020.

Complete details about the Requests for Proposals are available at www.aep.com/go/coaloffers.

American Electric Power, based in Columbus, Ohio, is focused on building a smarter energy infrastructure and delivering new technologies and custom energy solutions to our customers. AEP's approximately 17,400 employees operate and maintain the nation's largest electricity transmission system and more than 221,000 miles of distribution lines to efficiently deliver safe, reliable power to nearly 5.5 million regulated customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 31,000 megawatts of diverse generating capacity, including more than 5,200 megawatts of renewable energy. AEP's family of companies includes utilities 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, east Texas and the Texas Panhandle). AEP also owns AEP Energy, AEP Energy Partners, AEP OnSite Partners, and AEP Renewables, which provide innovative competitive energy solutions nationwide. For more information, visit aep.com.

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SOURCE American Electric Power

FAQ

What is the purpose of the recent bid announcement by AEP?

AEP is seeking bids for the supply of coal to its Cardinal Power Plant Units 1, 2, and 3.

When is the deadline for submitting coal proposals to AEP?

Proposals must be submitted by 5 p.m. on July 13, 2020.

What delivery timelines are specified for coal supply in AEP's bid?

Spot coal proposals are for delivery starting Q4 2020 for up to 3 months, while term coal is for Q1 2021 delivery lasting up to 3 years.

How does AEP plan to receive coal deliveries for the Cardinal Power Plant?

AEP plans to receive coal deliveries via FOB Barge and/or FOB Truck at the Cardinal Plant.