Coal Supply and Transportation

Transportation Consulting Coal markets in the United States have seen significant change in the past several years, with more price correlation to other energy commodities, namely natural gas, and with large shifts in demand driven by environmental compliance. L.E. Peabody & Associates, Inc. has experience analyzing coal markets across the country, including the Powder River Basin and other Western basins, Illinois Basin, and Appalachian Basin. We have supported over 60 electric utilities with market and contract analyses related to coal supply and transportation. For these clients, the Firm analyzes fuel production costs and the determination of the relationship of such costs to market prices and existing fuel supply agreements. We also focus on the interrelationships among fuel supply, fuel transportation and related equipment, and infrastructure needs to improve our clients' position within power production markets.
The Firm has been actively engaged in negotiating coal supply contracts for various users throughout the United States. These engagements include buy-out analyses, brokering, and modifying existing fuel supply agreements. The Firm's fuel supply assignments have included the analysis of alternative fuels to determine the impact of operating and maintenance costs on delivered fuel price, unloading costs, shrinkage factors and by-product savings. Coal Supply and Fuel Supply
Examples of Coal Supply and Transportation Experience …
  • Coal supply and transportation contract negotiations, including the valuation of embedded optionality
  • Fundamental coal price forecasting through production cost modeling
  • Analysis of economical supply alternatives that meet emissions and equipment specifications
  • Analysis of economical coal delivery alternatives
  • Coal car fleet lease versus buy analyses
  • Rail capacity analyses
  • Alternative market analyses

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