Dive Brief:
- Duke Energy told Florida regulators it has reached a deal in principle to purchase Calpine's 537 MW power plant in Auburndale.
- The development means Duke will scrap plans for two new generating units at its Suwanee plant.
- Duke will still need to upgrade its Hines Energy Complex and construct a new plant in Citrus County.
Dive Insight:
Why buy when you can build? Duke Energy Florida surprised regulators at an August 26 meeting to consider its future generation plans when it told the Florida Public Service Commission (PSC) it would buy a gas-fired plant from Calpine rather than construct two new turbines.
No details have been released, but The Ledger reports Duke's lawyer John Burnett told regulators there was a "deal in principle" to buy Calpine's Osprey Energy Center in Auburndale. The facility is about 10 years old and can generate 537 MW.
But Duke is holding fast on plans to construct one facility and upgrade another, citing the need for better reliability on its system as it retires two coal facilities. Those two projects are expected to cost about $1.7 billion and to come online in 2017 and 2018, respectively.
