Reducing Fuel Costs - Virginia Power's Transportation Program

Fuel is a major .cost for power generating utilities. Virginia Power is completing one of the nation's largest coal reconversion programs. As a result, 10 million tons of coal will now be used at six generating stations. Four of these stations are located on naviagable waterways. They consume over half of Virginia Power's coal. Historically, railroads have exclusively served these plants. In an effort to substantially reduce fuel cost, Virginia Power has reexamined transportation logistics and is proceeding with barge delivery. A phased approach was used by Virginia Power for the transportation program. Plant requirements were first identified. Coal sourcing issues were then examined. The concept of intermodal transportation was investigated. The bottom line cost savings was used as the criteria for continuing the project. The results thus far have been gratifying. Virginia Power has begun to implement barge transportation.