Duke Energy Selling Gas Peaking Plant to TVA

CHARLOTTE, N.C. - Duke Energy today announced it has entered into an agreement with the Tennessee Valley Authority (TVA) for TVA’s purchase of Duke Energy’s 480-megawatt natural gas-fired peaking generating station located near Brownsville, Tenn.

Under the agreement, TVA will pay $55 million for the plant, which has four combustion turbine units. Duke Energy expects to record a gain on the transaction in the Commercial Power business segment. The transaction is expected to close in the second quarter of 2008. The closing is subject to Federal Energy Regulatory Commission approval.

“With our focus on the Midwest, the market area served by the Brownsville plant is no longer a strategic fit for us,” said Phillip C. Grigsby, senior vice president, Midwest Generation Portfolio for Duke Energy. “The Brownsville facility will help TVA supplement its peaking capacity in the region.”

“The acquisition of the Brownsville combustion turbine plant is another step in TVA’s efforts to meet its customer needs with clean, cost effective generation,” said Ron Hall, general manager of TVA’s combustion turbines and distributed resources group.