Duke Energy Carolinas to sell five small hydroelectric plants to Northbrook Energy
Duke Energy Carolinas (DEC) announced Wednesday that it will sell, through a competitive bidding process, five small hydroelectric plants in the Western Carolinas region to Northbrook Energy.
DEC will purchase all of the energy generated by the facilities for five years through power purchase agreements with Northbrook Energy. The facilities have a combined generation capacity of 18.7 megawatts.
The facilities are Bryson, Franklin and Mission hydro stations in the Nantahala area, and Tuxedo and Gaston Shoals hydro stations in the Green/Broad River Basin.
“This sale will deliver long-term benefits for our customers and shareholders,” Randy Herrin, Duke Energy vice president of Carolinas Regulated Renewables, said. “Over the past few years, the cost to operate these facilities has risen significantly. Through this transaction, the plants will continue to serve our customers with clean, renewable energy, but at a lower cost.”
DEC noted that it is not presently disclosing the financial terms of the transaction but said it would result in net savings for customers over time.
DEC will seek approval from state regulators to establish a regulatory asset for the retail portion of the difference between sales proceeds and net book value.
The transaction is subject to approval from the Federal Energy Regulatory Commission (FERC), as well as other state regulatory approvals. Northbrook will assume all existing agreements entered into by DEC and must comply with all FERC license requirements.
DEC expects closing to occur in the first quarter of 2019.
