Interstate transmission regulator FERC -- the Federal Energy Regulatory Commission -- has given Duke Energy Progress a green light for purchasing about 700 megawatts of generating capacity involving two nuclear power plants and two coal fired generating stations.
FERC has approved Duke Energy Progress' plans to purchase the generating assets owned by the North Carolina Eastern Municipal Power Agency, which represents 32 cities and towns in eastern North Carolina.
The deal is valued at $1.2 billion and involves NCEMPA holdings in the Brunswick Nuclear Power Plant Units 1 and 2 in Brunswick County and the single unit Harris Nuclear Power Plant in Wake County.
It also involves the agency's generating assets in the Roxboro Plant Unit 4 and the Mayo Plant, both in Person County.
The transaction does not include NCEMPA's distribution assets.
The Nuclear Regulatory Commission and North Carolina must also approve the deal, which was announced in July.
If approved, Duke would also take over the Power Agency's fuel inventories and spare parts.
FERC also approved a 30-year wholesale power supply contract between Duke Energy Progress and the Power Agency to cover electricity demand from customers currently served by the Power Agency's interest in Duke Energy Progress' generating stations.
The deal is expected to close by the end of 2015, but terms of the agreement allow until the end of 2016 for a completed transaction, given the variables that arise during a regulatory approval process.
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