February 18, 2008

Duke Energy to Sell Brownsville Power Plant to TVA

Electricity utility Duke Energy has entered into an agreement with the Tennessee Valley Authority to sell its 480MW natural gas-fired peaking generating station located near Brownsville, Tennessee.

Under the agreement, Tennessee Valley Authority (TVA) will pay $55 million for the plant, which has four combustion turbine units. The transaction is expected to close in the second quarter of 2008. The closing is subject to Federal Energy Regulatory Commission approval.

Ron Hall, general manager of TVA's combustion turbines and distributed resources group, said: "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."