Summary
Duke Energy Corporation, through its subsidiary Duke Energy Carolinas, LLC, has entered into a significant agreement with Stone & Webster National Engineering, P.C. (an affiliate of The Shaw Group Inc.) for the construction of a new 800MW supercritical pulverized coal unit, designated Unit 6, at its Cliffside Generating Station in North Carolina. This project, valued at approximately $1.29 billion, is a substantial investment aimed at enhancing base-load power generation capacity for the Carolinas region, with a planned commercial operation date by summer 2012. In addition to the new Unit 6, the agreement also includes the integration and construction of a previously approved flue gas desulfurization (FGD) system for the existing Unit 5 at the same station, scheduled for completion by mid-2010. This dual-project undertaking signifies Duke Energy's commitment to expanding its power generation capabilities while also addressing environmental controls on existing infrastructure. Investors should note the substantial capital expenditure and the long-term nature of this project, which is critical for meeting future energy demand.
Key Highlights
- 1Duke Energy Carolinas, LLC entered into a material definitive agreement for the construction of an 800MW supercritical pulverized coal unit (Unit 6) at the Cliffside Generating Station.
- 2The total contract value for the construction of Unit 6 and a flue gas desulfurization (FGD) system for Unit 5 is approximately $1.29 billion.
- 3Unit 6 is planned to commence commercial operation by the summer of 2012, providing crucial base-load capacity.
- 4The agreement includes the integration and construction of a flue gas desulfurization (FGD) system for the existing Unit 5, with an expected in-service date by mid-2010.
- 5The construction services are being provided by Stone & Webster National Engineering, P.C. (SWNE), an affiliate of The Shaw Group Inc.
- 6Duke Energy Carolinas has the right to terminate the agreement for convenience, subject to customary cancellation charges.