Duke Energy Carolinas LLC announced May 16 plans to sell, through a competitive bidding process, five hydroelectric assets with a combined capacity of 18.7 MW to Northbrook Energy LLC.
As part of the proposed transaction, Northbrook will sell power from the plants under separate, five-year power purchase agreements to the Duke Energy Corp. subsidiary.
Duke Energy Carolinas said in a news release it will seek approval from state regulators to establish a regulatory asset for the retail portion of the difference between sales proceeds and net book value. Financial details were not disclosed.
The five facilities are the Bryson, Franklin, Mission and Tuxedo facilities in North Carolina and Gaston Shoals in South Carolina.
"Over the past few years, the cost to operate these facilities has risen significantly," Duke Energy Vice President of Carolinas Regulated Renewables Randy Herrin said. "Through this transaction, the plants will continue to serve our customers with clean renewable energy, but at a lower cost."
New Energy Capital Partners LLC will help Northbrook finance the deal. Northbrook is a privately-held independent power producer with hydro assets in 12 states.
The transaction is expected to occur in the first quarter of 2019 and is subject to approval from the Federal Energy Regulatory Commission and state regulators.