Summary
This Form 8-K filing by Duke Energy Corporation (DUK) on December 28, 2009, primarily pertains to an amendment of a material definitive agreement by its subsidiary, Duke Energy Carolinas, LLC (DE Carolinas). The amendment concerns a significant construction project for a new natural-gas fired electric generation station. Investors should note the revised operational timeline and the total contract value, as these changes could impact project costs and revenue generation timelines. The key update involves a "First Amended and Restated engineering, construction and commissioning services agreement" with Shaw North Carolina, Inc. This revised agreement alters the construction plan for a 620MW combustion turbine station. Specifically, the station will now commence operations in combined cycle mode by the winter of 2011, a shift from the original plan of simple cycle operations by summer 2010. The total contract value for Shaw's work is approximately $322 million.
Key Highlights
- 1Duke Energy Carolinas, LLC (DE Carolinas) amended its engineering, construction, and commissioning services agreement with Shaw North Carolina, Inc.
- 2The amendment pertains to the construction of a new 620MW natural-gas fired electric generation station.
- 3The station's operational timeline has been revised: it will now begin combined cycle operations by winter 2011.
- 4This is a change from the original plan for simple cycle operations by summer 2010.
- 5The total contract value for Shaw's scope of work is approximately $322 million.
- 6DE Carolinas retains the right to terminate the agreement for convenience, subject to cancellation charges.