Appalachian Power Sues Coal Supplier Over Missed Deliveries

The utility alleges American Consolidated Natural Resources, formerly Murray Energy, failed to meet a contract to supply 2.75 million tons of coal in 2021 and seeks $45 million in damages.

Appalachian Power is suing one of its coal suppliers, claiming breach of contract and seeking tens of millions of dollars in damages.

Appalachian Power wants to recover $45 million from American Consolidated Natural Resources, formerly Murray Energy.

The utility alleges ACNR failed to meet a contract to supply 2.75 million tons of coal in 2021.

Appalachian Power has told West Virginia regulators in recent months that low coal stockpiles have forced it to idle its Amos, Mountaineer and Mitchell plants for longer periods.

That then required the company to purchase power from the PJM regional market to meet its customer needs, but at higher cost.

The lawsuit was filed in Columbus, Ohio, the headquarters of Appalachian Power parent American Electric Power.

Murray Energy sought bankruptcy protection in October 2019 and emerged as ACNR in September 2020.

Its founder, Bob Murray, sought black lung benefits before he died in October 2020 at age 80.

Appalachian Power is an underwriter of West Virginia Public Broadcasting.

Author: Curtis Tate

Curtis is our Energy & Environment Reporter, based in Charleston. He has spent more than 17 years as a reporter and copy editor for Gannett, Dow Jones and McClatchy. He has written extensively about travel, transportation and Congress for USA TODAY, The Bergen Record, The Lexington Herald-Leader, The Wichita Eagle, The Belleville News-Democrat and The Sacramento Bee. You can reach him at ctate@wvpublic.org.

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