Duke Energy Carolinas selling hydro plants, then buying back power
The five hydropower facilities in the western Carolinas region together produce 18.7 MW in generation capacity
The five hydropower facilities in the western Carolinas region together produce 18.7 MW in generation capacity. They include the Bryson, Franklin and Mission hydro stations in the Nantahala area, and the Tuxedo and Gaston Shaols plans in the Green/Broad River Basin.
"This sale will deliver long-term benefits for our customers and shareholders," said Randy Herrin, Duke Energy Vice President, Carolinas Regulated Renewables. "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."
Northbrook Energy will then sell the energy from those hydro facilities to Duke Energy Carolinas through a five-year power purchase agreement.
The cost of upkeep led Duke Energy Carolinas to sell the facilities. No financial details are being disclosed.
The completion of the transaction is subject to approval from the Federal Energy Regulatory Commission (FERC) to transfer the hydroelectric licenses to Northbrook Energy, as well as other state regulatory approvals.
Northbrook Energy will be required to comply with all FERC license requirements as well as existing agreements entered into by DEC, which Northbrook will assume.
Closing is expected to occur in the first quarter of 2019.