Duke Energy Selling Gas Peaking Plant to TVA February 15, 2008
CHARLOTTE, N.C. -
Duke Energy today announced it has entered into an agreement with the Tennessee Valley Authority (TVA) for TVA's purchase of Duke Energy's 480-megawatt natural gas-fired peaking generating station located near Brownsville, Tenn.
Under the agreement, TVA will pay $55 million for the plant, which has four combustion turbine units. Duke Energy expects to record a gain on the transaction in the Commercial Power business segment. The transaction is expected to close in the second quarter of 2008. The closing is subject to Federal Energy Regulatory Commission approval.
"With our focus on the Midwest, the market area served by the Brownsville plant is no longer a strategic fit for us," said Phillip C. Grigsby, senior vice president, Midwest Generation Portfolio for Duke Energy. "The Brownsville facility will help TVA supplement its peaking capacity in the region."
"The acquisition of the Brownsville combustion turbine plant is another step in TVA's efforts to meet its customer needs with clean, cost effective generation," said Ron Hall, general manager of TVA's combustion turbines and distributed resources group.
Duke Energy, one of the largest electric power companies in the United States, supplies and delivers energy to approximately 4 million U.S. customers. The company has approximately 36,000 megawatts of electric generating capacity in the Midwest and the Carolinas, and natural gas distribution services in Ohio and Kentucky. In addition, Duke Energy has more than 4,000 megawatts of electric generation in Latin America, and is a joint-venture partner in a U.S. real estate company.
Duke Energy's commercial power business has approximately 8,100 megawatts of unregulated generation, primarily in the Midwest, including efficient natural gas and coal-fired plants. Substantially all of the financial results for this business are driven by sales to retail customers in Ohio under the state's rate stabilization plan.
Headquartered in Charlotte, N.C., Duke Energy is a Fortune 500 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available on the Internet at: www.duke-energy.com.
|Contact:||Carl Chavis, Duke Energy|
|Contact:||Jessica Stone, TVA|