Duke Energy's proposed Texas wind contract worth $820M
A proposed $820 million wind contract Duke Energy Renewables is negotiating with a Texas municipal utility gives a first glimpse into the financial workings of Duke’s unregulated renewable-energy business.
Austin Energy proposes a 25-year contract for up to 200 megawatts of wind capacity from Duke at a project it is building in Cameron and Willacy counties in Texas. It would be the second phase of the Los Vientos Windpower Project, which Duke announced this month.
The proposal calls for the utility to pay Duke Renewables up to $32.8 million per year. The power is expected to cost Austin Energy’s customers 3.5 cents to 4.5 cents per kilowatt hour.
Austin Energy spokesman Ed Clark says the company is clearly seeing a drop in the price for wind-generated power. “We most recently offered our customers a wind package at 5.6 cents a kilowatt hour,” he says.
He says the low cost of power from natural gas plants has created a highly competitive market for power purchases.
But it also appears that the costs for developing wind projects are dropping.
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