The board of directors for Duke Energy Progress (NYSE: DUK) and the North Carolina Eastern Municipal Power Agency (NCEMPA) approved an agreement for Duke Energy Progress to acquire the NCEMPA’s ownership in certain generating assets
NCEMPA maintains part ownership in several Duke Energy Progress plants including: Brunswick Nuclear Plant Units 1 and 2 in Brunswick County; Mayo Plant and Roxboro Plant Unit 4 in Person County; and the Harris Nuclear Plant in Wake County.
NCEMPA’s ownership interest in these plants represents about 700-MW of generating capacity
The purchase price for NCEMPA’s ownership interest in the plants, fuel inventories, and spare parts inventory is $1.2 billion.
Under terms of the agreement, Duke Energy Progress and NCEMPA will enter into a 30-year wholesale power supply agreement
Completion of the transaction is subject to closing conditions and regulatory approval
Duke Energy Progress is expected to file the asset purchase agreement for approval in September with the Federal Energy Regulatory Commission (FERC)
Duke Energy Progress is also required to provide notice to the North Carolina Utilities Commission (NCUC) at least 30 days prior to the FERC filing
Approvals must be received and the transaction completed by the end of 2016.
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