Duke Energy Acquires Tierra Energy's Wind Development Business
Share:
CHARLOTTE, N.C., May 29: Duke Energy today announced that it has acquired the wind power development business of Tierra Energy, a leading wind power development company located in Austin, Texas, from Energy Investors Funds for an undisclosed amount. The purchase includes more than 1,000 megawatts of wind assets under development in the Western and Southwestern United States.
Three of the development projects - a total of approximately 240 megawatts - are located in Texas and Wyoming, and are anticipated to be in commercial operation by the end of next year, with additional facilities potentially in operation as early as 2009. The power produced will be sold through long-term contracts.
"As our nation's appetite for electricity continues to grow, renewable energy will play a larger role in meeting that demand," said Duke Energy Chairman, President and CEO, James E. Rogers. "This acquisition supports our strategy to increase our investment in renewable energy and national efforts to reduce carbon emissions."
The assets become part of Duke Energy Generation Services (DEGS), a Duke Energy subsidiary that focuses on investments in onsite energy, commercial and renewable energy assets across North America.
Six members of Tierra Energy's senior management team are joining DEGS, including David Marks, formerly Tierra Energy president. Marks becomes DEGS' senior vice president, business development - wind energy.
"We're very excited to be involved with this environmentally friendly technology and that David and his team are joining us," said DEGS President, Wouter van Kempen. "We see wind power as a potential growth opportunity for DEGS, and we plan to spend approximately $400 million in capital expenditures through 2008 to complete the first three development projects. We would expect to begin seeing earnings from these assets in 2009."
Duke Energy currently has purchase agreements for wind generation in Indiana and recently installed solar panels at 10 Indiana schools. The company also recently issued a request for proposal for renewable energy to help meet growing demand in the Carolinas.
DEGS develops, owns and operates electric generation for large energy consumers, municipalities, utilities and industrial facilities. DEGS specializes in developing innovative and environmentally sound generation solutions using a variety of fuels, including natural gas, coal, waste coal and wood, as well as wind and other renewable energy.
Duke Energy Corp., one of the largest electric power companies in the United States, supplies and delivers energy to approximately 3.9 million U.S. customers.
The company has nearly 37,000 megawatts of electric generating capacity in the Midwest and the Carolinas, and natural gas distribution services in Ohio and Kentucky. In addition, Duke Energy has more than 4,000 megawatts of electric generation in Latin America, and is a joint-venture partner in a U.S. real estate company.
Headquartered in Charlotte, N.C., Duke Energy (NYSE:DUK) is a Fortune 500 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available on the Internet at: www.duke-energy.com.
Source: Duke Energy
MEDIA CONTACT Mark Craft
Phone: 513/419-5943 or 704/382-7364
24-Hour: 704/382-8333
ANALYST CONTACT Sean Trauschke
Phone:980/373-7905
