Duke Energy Corporation (DUK) has announced plans to build a large-scale wind farm in Willacy County, Texas, and sell the electricity it generates to San Antonio-based municipal-owned utility, CPS Energy.
Duke Energy Renewables, a commercial business unit of Duke Energy, will build, own and operate the 200-megawatt (MW) Los Vientos I Windpower Project. The wind farm would be located at Willacy County, Texas, approximately 120 miles south of Corpus Christi and 20 miles inland from the Gulf of Mexico.
Duke Energy will sell all of the output from the wind farm and associated renewable energy credits to CPS Energy under the terms of a 25-year agreement. CPS Energy already buys all of the electricity generated at Duke Energy Renewables' 14-MW Blue Wing Solar Project in San Antonio. The Blue Wing solar farm, which consists of approximately 215,000 photovoltaic panels, becomes operational in November 2010.
In the fourth quarter of 2011 Duke Energy Renewables plans to start construction of the Los Vientos I Windpower Project. The wind farm is expected to become operational in December 2012.
Duke Energy Renewables owns nearly 1,000 MW of generating capacity at nine U.S. wind farms – four in Wyoming, three in Texas, one in Colorado and one in Pennsylvania.
Charlotte, North Carolina-based Duke Energy Corp. is a diversified energy company with a portfolio of domestic and international, natural gas and electric, regulated and unregulated businesses. Its regulated utility operations serve approximately 4 million customers in North Carolina, South Carolina, Indiana, Ohio and Kentucky, comprising a population of approximately 11 million.
Duke Energy’s stable U.S. electricity and gas operations provide a relatively stable and growing earnings stream. Looking ahead, higher rates through recent settlement agreements in Kentucky, North Carolina and South Carolina will stand the company’s long-term goal of 4%-6% earnings growth in good stead.
Duke Energy’s Commercial Power and International Business segments own and operate diverse power generation assets in North America and Latin America, including a growing portfolio of renewable energy assets in the U.S.
Duke Energy currently has a short term Zacks #3 Rank (Hold), which translates into a long-term Neutral recommendation for the stock. This is consistent with the ranks of its closest peers, The AES Corporation (AES) and Ameren Corporation (AEE).
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