Title
RESOLUTION AUTHORIZING THE PURCHASE OF 2,000 TONS OF COAL FOR DULUTH ENERGY SYSTEMS FROM NAVAJO TRANSITIONAL ENERGY COMPANY, LLC FOR A TOTAL AMOUNT OF $202,920.00
Body
CITY PROPOSAL:
RESOLVED, that the proper city officials are authorized to purchase 2,000 tons of coal for Duluth Energy Systems from Navajo Transitional Energy Company, LLC for a total amount of $202,920.00, payable from fund 540-920-1490-5387; (steam, Steam Department, steam production, coal).
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes a purchase from Navajo Transitional Energy Company, LLC for 2,000 tons of coal for Duluth Energy Systems for a total amount of $202,920.00.
Midwest Energy was the storage facility for Duluth Energy System’s (DES) coal pile and as of July 2026, Midwest Energy closed, forcing DES to move the remaining coal that was on hand at the facility. DES sold the coal to the University of Minnesota. This was a savings on trucking costs and the elimination of older coal as it loses BTU value over time. Duluth Energy Systems still needs coal going forward for the next number of years in case of emergency, which will be purchased from Navajo Transition Energy Company, LLC and stored at Hallet Dock No. 6.