New Contract Fuels Southeast’s Profits

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After four years of providing coal on an as-needed basis for Baltimore Gas and Electric Co. (BGE), Southeast Fuels recently outbit several leading coal providers to win a seven-year, $75 million coal delivery contract. Southeast will supply BGE with 400,000 tons of coal each year.

“This gives us real strength in terms of an account base because we have a stable cash flow to depend on for a number of years,” says Southeast Fuels President Ralph K. Shelton. The contract is valuable, Shelton continues, because it allows the company to expand into other markets, thus diversifying its account base.

While this is the largest contract ever awarded to a black-owned firm by BGE, “this was far from being a set-aside,” says Harold D. Williams, director of BGE’s procurement opportunity program. “HE [Shelton] got the deal because we’re getting the best product at the best price.”