Hastings Utility Board OKs recommending Peabody coal‑supply extension to city council

The Hastings Utility Board voted April 10 to ask the advisory board to recommend approval of a proposed extension to the city’s coal supply agreement with Peabody Coal Sales LLC, a staff presentation said.

Shane Stone, introduced by staff as the city’s operating‑agent representative, told the board that Peabody submitted a proposal for a possible extension and that a redacted version of the proposal was included in the meeting materials. "It lines up well with our rail contract," Stone said, and he described the pricing terms as favorable.

"As the operating agent, Hastings Utilities is responsible for rail, consumable contracts," Stone said, adding that Hastings provides coal to its own generating unit, to a PPGA unit and sells coal to a large industrial customer. He said the proposed amendment would keep pricing in place through 2027 and give staff time to evaluate future bids when both coal and rail contracts can be timed together.

Board members moved and seconded a motion to approve the advisory‑board recommendation to forward the agreement to city council. The roll call on the motion recorded Board member Bill Heitzman, Board member Jeanette DeWalt and Board member Mark Himjee voting yes; the motion carried.

Staff told the board the item will return to the board for approval before being forwarded to city council if the advisory board recommends advancement and that a closed session could be scheduled if negotiations required it.

Ending: No price details were discussed in open session; meeting materials included a redacted proposal and staff said additional negotiation details are confidential until final approval and possible closed session.