CHARLOTTE, N.C., Feb. 15 /CNW/ -- Duke Energy (NYSE: DUK) 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.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040414/DUKEENERGYLOGO )
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.
Duke Energy Contact: Carl Chavis
TVA Contact: Jessica Stone
For further information:
For further information: Carl Chavis of Duke Energy, +1-513-419-5373,
24-Hour: +1-704-382-8333; or Jessica Stone of TVA, +1-423-751-4480 Web Site: