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The Charlotte Business Journal - 2008-08-08

Duke Energy eyes expansion at Rockingham plant (new window)

John Downey, Senior staff writer.

Duke Energy Carolinas may expand its gas-fired plant in Rockingham County, increasing its capacity more than 80%.

The utility has bought 60 acres adjacent to the 82-acre Rockingham site for the expansion, which will need state regulatory approval.

The project would add 677 megawatts of capacity to the Duke system by 2011.

Duke says the plans for the addition of four turbines — bringing the total to nine — at Rockingham are preliminary. And the company has not yet asked the N.C. Utilities Commission for a certificate allowing construction to go forward.

Advocacy groups critical of Duke’s overall plans to expand capacity say the addition demonstrates the company isn’t serious about conservation. “It strains credulity that they are serious about energy efficiency and simultaneously want to build this plant,” says Shana Becker of N.C. Public Interest Research Group.

Duke has been pitching its version of large-scale conservation to state regulators for more than a year. Company officials testified last week in Raleigh that the proposed Save-A-Watt program would allow Duke to forgo one gas plant and delay construction of two more.

However, Duke executives say conservation alone won’t solve North Carolina’s energy needs in the future.

The preliminary notice on the Rockingham expansion is meant to start the process so the plant could open by 2011, if necessary.

Duke is not disclosing the costs for the expansion at this time. According to regulators, the typical per-kilowatt cost for such plants would put the project at between $470 million and $540 million.

Spokeswoman Paige Sheehan says the new plant — which would be used for peak-load hours only — is needed even with the hoped-for Save-A-Watt conservation.

By Duke’s analysis, she says, increasing demand projections show the utility will need 990 megawatts of additional capacity by 2010 and 3,190 megawatts by 2012.

Duke expects to decide whether to proceed with a certificate by the end of the year.

That will be after Duke files its 2008 long-range plan, which could revise the projected capacity needs.

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