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Duke agrees to $1.2B deal with ElectriCities

Published on NewsOK Modified: July 28, 2014 at 2:36 pm •  Published: July 28, 2014
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ElectriCities ownership interest in the plants represents approximately 700 megawatts of generating capacity. Under the agreement, Duke agreed to a 30-year contract to provide wholesale power to the affected communities. Just how much rates go down in each town will depend on several factors, such as each community's share of the outstanding debt and how much electricity they use.

Paul Newton, Duke Energy's president for its North Carolina operations, said the agreement will also benefit his company's customers through long-term fuel savings that help keep rates affordable.

"We have been providing electric service to North Carolina Eastern Municipal Power Agency members for more than 100 years, and we look forward to beginning this new chapter in our ongoing commitment to the communities of eastern North Carolina," Newton said.

Duke Energy acquired Progress Energy in a 2012 mega-merger that made the combined corporation the largest electricity company in the United States. Duke, which has its headquarters in Charlotte, has more than 7.2 million retail customers in the Carolinas, Ohio, Indiana, Kentucky and Florida.

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Follow Associated Press writer Michael Biesecker at Twitter.com/mbieseck