Duke Energy Progress buys municipal power agency’s generation assets
Duke Energy Progress bought 701 MW of electricity generation assets for approximately $1.25 billion from the North Carolina Eastern Municipal Power Agency (NCEMPA) in 2015.
The assets comprised NCEMPA’s minority ownership interest in four North Carolina power plants – Brunswick Nuclear Plant Units 1 and 2, Harris Nuclear Plant, Mayo Plant and Roxboro Plant Unit 4 (Mayo and Roxboro are coal plants) – all operated and majority-owned by Duke Energy Progress.
NCEMPA consists of 32 eastern North Carolina cities and towns that own and operate municipal electric systems, collectively serving about 270,000 retail customers.
For Duke Energy Progress customers, the purchase provides long-term power plant fuel savings that will help keep electricity rates affordable.
For NCEMPA’s cities and towns, the purchase provides important economic benefits, including reduced or eliminated debt from the agency’s 1980s investments in the power plants.
As part of the sale, Duke Energy Progress and NCEMPA signed a 30-year wholesale power supply agreement under which Duke Energy Progress will meet the full electricity requirements of NCEMPA’s member cities and towns.
NCEMPA members’ electricity distribution assets were not part of the sale, and will continue to be owned and maintained by the members.