Summary
Duke Energy Carolinas, LLC (DE Carolinas), a subsidiary of Duke Energy Corporation, has entered into a significant material definitive agreement with Shaw North Carolina, Inc. This agreement, effective May 5, 2008, concerns the engineering, construction, and commissioning services for a new natural-gas fired electric generation station. The project, valued at approximately $275 million, will add a 620MW combustion turbine combined cycle facility at DE Carolinas' existing Buck steam station site in Rowan County, North Carolina. This new station is intended to provide intermediate generating capacity to the Carolinas system. The project is slated for commercial operation in simple cycle mode by summer 2010 and in combined cycle mode by summer 2011, subject to approval from the North Carolina Utilities Commission. The agreement includes flexibility for DE Carolinas to terminate the contract for convenience, subject to specified charges, offering some operational flexibility.
Key Highlights
- 1Duke Energy Carolinas, LLC entered into a material definitive agreement with Shaw North Carolina, Inc. on May 5, 2008.
- 2The agreement is for the construction of a new 620MW natural-gas fired electric generation station.
- 3The project is located at DE Carolinas' existing Buck steam station in Rowan County, North Carolina.
- 4The total contract value for Shaw's scope of work is approximately $275 million.
- 5Commercial operation is planned for summer 2010 (simple cycle) and summer 2011 (combined cycle), pending regulatory approval.
- 6The new station will provide intermediate generating capacity to the Carolinas system.
- 7DE Carolinas has the right to terminate the agreement for convenience, subject to cancellation fees.