Summary
Duke Energy Corporation (DUK), through its subsidiary Duke Energy Carolinas, LLC (DE Carolinas), has entered into a material definitive agreement with Shaw North Carolina, Inc. This agreement, effective March 8, 2010, outlines the engineering, construction, and commissioning services for a new 620MW combined-cycle natural-gas fired electric generation station. The station will be located at DE Carolinas' existing Dan River site in North Carolina and is anticipated to begin commercial operations by the end of 2012, providing crucial intermediate generating capacity for the Carolinas system. The total contract value for Shaw's scope of work is approximately $325 million. This project, which received prior approval from the North Carolina Utilities Commission in June 2008, represents a significant capital investment aimed at enhancing Duke Energy's generation infrastructure. Investors should note that DE Carolinas retains the right to terminate the agreement for convenience, subject to specified cancellation charges.
Key Highlights
- 1Duke Energy Carolinas, LLC entered into a $325 million agreement with Shaw North Carolina, Inc. for the construction of a new 620MW natural-gas fired combined-cycle power station.
- 2The new station will be located at the existing Dan River steam station site in Rockingham County, North Carolina.
- 3Commercial operations for the new station are planned to commence by the end of 2012.
- 4The project will provide intermediate generating capacity to the Carolinas system.
- 5The North Carolina Utilities Commission previously approved the Certificate of Public Convenience and Necessity for this project in June 2008.
- 6The agreement allows Duke Energy Carolinas to terminate the contract for convenience, with associated cancellation charges.
- 7The new station will feature two General Electric combustion turbines, two heat recovery steam generators, and one steam turbine generator.