Duke Energy Progress and the North Carolina Eastern Municipal Power Agency (NCEMPA) announced that both companies' boards of directors have approved an agreement for Duke Energy Progress to purchase the Power Agency's ownership in certain generating assets.
NCEMPA currently maintains partial ownership interest in several Duke Energy Progress plants, including Brunswick Nuclear Plant Units 1 and 2 (Brunswick County), Mayo Plant (Person County), Roxboro Plant Unit 4 (Person County) and the Harris Nuclear Plant (Wake County).
The Power Agency's ownership interest in these plants represents about 700 MW of generating capacity.
The purchase price for NCEMPA's ownership interest in the plants, fuel inventories, and spare parts inventory is $1.2 billion, subject to certain adjustments as set forth in the asset purchase agreement (APA).
NCEMPA members' distribution assets are not part of the agreement, and will continue to be owned and maintained by those members.
Under the agreement, Duke Energy Progress and NCEMPA will enter into a 30-year wholesale power supply agreement to continue meeting the needs of NCEMPA customers currently served by the Power Agency's interest in Duke Energy Progress' plants.
Completion of the transaction will be subject to several closing conditions, including regulatory approval by various state and federal agencies. Duke Energy Progress is expected to file the APA for approval by early September with the Federal Energy Regulatory Commission (FERC). Duke Energy Progress is required to provide advance notice to the North Carolina Utilities Commission (NCUC) at least 30 days prior to the FERC filing. Notification with the NCUC will be made later today.
Both parties will work diligently to close the transaction as quickly as possible. Under the terms of the agreement, approvals must be received and the transaction completed by the end of 2016. Ultimately, the timing of the transaction will be determined by the approval process.