MEMORANDUMCoal Supply Purchase Agreement • January 29th, 2016
Attached hereto for your consideration is an agreement with Hamilton County Coal, LLC, a subsidiary of Alliance Coal, LLC (Hamilton) for the purchase of coal from Hamilton Mine #1 located in Hamilton, Illinois. Currently, the majority of coal supplied to the McIntosh Power Plant comes from the Illinois Basin region as the railroad transportation rates were designed to target this area in an effort to lower Lakeland Electric’s fuel costs.
MEMORANDUMCoal Supply Purchase Agreement • March 2nd, 2016
Attached hereto for your consideration is a proposed agreement with Glencore, Ltd. (Glencore) to purchase 66,000 tons of low sulfur Colombian coal, which Lakeland Electric will continue to blend with higher sulfur Illinois Basin (IB) coal to maintain reduced sulfur emissions from Unit 3 at the McIntosh Power Plant. The Colombian coal, guaranteed at 12,000 BTU and 0.85% sulfur, will be blended to maintain emission compliance.
