Duke Energy defers construction on three projects in western US

20 September 2002 – Driven by the decline of the wholesale energy market in western United States, Duke Energy has deferred construction on three natural gas-fueled generating facilities previously slated for commercial operations in 2003.

The deferrals will be in place until market conditions and demand for additional generation in the region improves.

The facilities include the 620-megawatt Grays Harbor Energy Facility in Grays Harbor County, Wash.; the 1,200-megawatt Moapa Energy Facility in Clark County, Nev.; and the 600-megawatt Deming Energy Facility in Luna County, N.M. In August, Duke Energy had temporarily halted work at its Grays Harbor and Deming facilities and slowed work at the Moapa facility.
The company will have minimum staffing at the three facilities to provide security and maintain the condition of equipment already in place.

“As forward wholesale markets change in a region, we sharpen our focus on optimizing the operation and value of our existing assets and carefully evaluate construction of new facilities,” said Jim Donnell, president and chief executive officer of Duke Energy North America (DENA), which develops merchant plants to provide power to the competitive wholesale market.
“The western market has seen a dramatic decline in the economics of bringing any new generation on line for summer 2003, the previous schedule for these facilities. We will continue to evaluate the market and determine an appropriate time to re-establish a construction schedule. At this time, it would be inappropriate to speculate when that decision will be made.”

Construction activities will continue on two other Duke Energy facilities scheduled for commercial operation in 2003 — the 620-megawatt Fayette Energy Facility in Fayette County, Pa., and the 1,240-megawatt Hanging Rock Energy Facility in Lawrence County, Ohio.

Duke Energy North America (DENA) is Duke Energy’s North American merchant energy business. DENA’s generation portfolio currently includes approximately 15,300 megawatts in operation.

Duke Energy is a diversified multinational energy company with an integrated network of energy assets and expertise. The company manages a dynamic portfolio of natural gas and electric supply, delivery and trading businesses — meeting the energy needs of customers throughout North America and in key markets around the world.

Duke Energy, headquartered in Charlotte, N.C., is a Fortune 100 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

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