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Duke Energy to acquire Rockingham Power Plant from Dynegy

22 May 2006 — Duke Energy today announced an agreement today to acquire an approximately 825 MW power plant located in Rockingham County, North Carolina, US, from Dynegy for approximately $195 million.

The plant, which went into operation in 2000, consists of five 165 MW Westinghouse combustion turbine units capable of using either natural gas or oil to operate.

Duke Energy released a statement saying the the acquisition was consistent with Duke Energy’s Integrated Resource Plan, which describes the company’s plan to meet its customers’ electricity needs in North Carolina and South Carolina over the next 20 years.

Duke Energy plans to use the additional power for peaking capacity and reliability of its transmission system. The transaction, anticipated to close by year-end, requires North Carolina Utilities Commission, Federal Energy Regulatory Commission and Hart-Scott- Rodino approvals.

The Rockingham plant is located north of Greensboro within Duke Energy’s North Carolina service area. It is a peaking power plant — used during times of high electricity demand, generally in the winter and summer months.