$1.2B buys out NCEMPA's ownership in Duke Energy's power plants
An agreement between Duke Energy Progress and the North Carolina Eastern Municipal Power Agency (NCEMPA) has been approved by their respective boards for Duke Energy Progress to purchase the Power Agency's ownership in certain generating assets, at a purchase price of $1.2 billion. Under the agreement, Duke Energy Progress and NCEMPA will enter into a 30-year wholesale power supply agreement to continue meeting the needs of NCEMPA customers currently served by the power agency's interest in Duke Energy Progress' plants.
Brunswick Nuclear Power Plant. Credit: Wikimedia Commons/Jonathan Haas
NCEMPA currently maintains partial ownership interest in several Duke Energy Progress plants, including Brunswick Nuclear Plant Units 1 and 2, Mayo Plant, Roxboro Plant Unit 4, and the Harris Nuclear Plant. The power agency's ownership interest in these plants represents approximately 700 MW of generating capacity.
The purchase price for NCEMPA's ownership interest in the plants, fuel inventories, and spare parts is subject to certain adjustments as set forth in the asset purchase agreement. NCEMPA members' distribution assets are not part of the agreement.
"This agreement provides positive benefits to Duke Energy Progress customers, including long-term fuel savings that help keep rates affordable," said Paul Newton, Duke Energy president -- North Carolina.
The transaction is still subject to several closing conditions, including regulatory approval by various state and federal agencies. The asset purchase agreement is expected to be filed with the Federal Energy Regulatory Commission (FERC) by Duke Energy no later than early September.
Under the terms of the agreement, approvals must be received and the transaction completed by the end of 2016.
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Duke could buy out partial nuclear owners