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26 March 26 2007 -- PPL Montana and Puget Sound Energy have signed a long-term agreement with Western Energy Company, a unit of Westmoreland Coal Company, for coal supply from the Rosebud Mine near Colstrip Units 1 and 2.
Financial terms were not immediately disclosed.
Under the contract, which will begin in 2010 when the current coal supply contract expires, Western will supply 100 percent of the Units 1 and 2 coal requirements -- about 3 million tons a year -- subject to plant operator and owner options to introduce other coal sources later in the contract.
Current mining projections indicate that this agreement will cover coal supply through at least 2019. Depending on future mining cost and quality, the total coal reserve at the Rosebud Mine could allow the agreement to extend as long as 2028.
The current contract with WECO for coal supply for Units 1 and 2, which began in the mid-1970s with the initial operation of the units, will expire December 31, 2009.
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