North Carolina Municipal Power Agency Number 1 (NCMPA1) and Central Electric Power Cooperative, Inc., (Central) are near completion of a Purchase Power Agreement enabling Central to purchase nuclear capacity and energy associated with a portion of NCMPA1’s ownership interest in the Catawba Nuclear Station.
Under the terms of the agreement, Central will receive 150 megawatts, totaling 18% of NCMPA1’s project output. The agreement diversifies NCMPA1’s energy resource portfolio and provides wholesale electric rate savings to NCMPA1’s 19 member communities. Analysis shows a 5% savings in wholesale power supply costs over the term of the contract for approximately $254 million in net present value total savings to those North Carolina communities.
“This agreement is an important step in diversifying the energy portfolio for public power communities in the western part of the state and delivers significant wholesale electric rate savings to those communities,” said Roy Jones, CEO of ElectriCities. “The 19 unanimous city and town council votes are a strong reminder of the strength and partnership of those communities working together to set up public power for success now and far into the future.”
The agreement would provide Central, a not-for-profit generation and transmission cooperative headquartered in Columbia, South Carolina, with additional nuclear capacity to serve South Carolina’s 20 distribution cooperatives.
“We are excited to secure an additional 150 megawatts of reliable, baseload carbon-free generation for South Carolina’s energy portfolio,” said Rob Hochstetler, CEO of Central Electric. “Rising demand for electricity has made it more difficult–and more important–to acquire dependable generation, particularly in the Southeast. Finalizing this deal will help South Carolina stay attractive to new industries and help keep the power on during the times we need it most. This agreement will pay dividends for years to come.”
Completion of the agreement is subject to several conditions, including unanimous consent of all 19 NCMPA1 participant city and town councils. As of Aug. 30, all 19 NCMPA1 participants voted to approve the agreement. The ElectriCities Board of Directors and the NCMPA1 Board of Commissioners approved the agreement earlier this year.
The agreement is slated to go into effect January 1, 2024, and will continue through the term of the Catawba Nuclear Station, which is currently licensed through 2043.
The Catawba Nuclear Station, which consists of two identical units, is jointly owned by NCMPA1, Duke Energy Carolinas, Piedmont Municipal Power Agency, and the North Carolina Electric Membership Corporation, with NCMPA1 owning 75% of Catawba Unit 2.
NCMPA1 is made up of 19 participating cities and towns in piedmont and western North Carolina and provides wholesale power to those participants. The 19 NCMPA1 participants are Albemarle, Bostic, Cherryville, Cornelius, Drexel, Gastonia, Granite Falls, High Point, Huntersville, Landis, Lexington, Lincolnton, Maiden, Monroe, Morganton, Newton, Pineville, Shelby, and Statesville.
About Central Electric Power Cooperative, Inc.
Central Electric Power Cooperative, Inc., is a not-for-profit generation and transmission cooperative headquartered in Columbia, South Carolina. Together, Central and its 20 member cooperatives serve more than 1.6 million South Carolinians and cover more than 70% of the state’s land mass. South Carolina’s independent, member-owned electric cooperatives formed Central in 1948 in order to pool their resources to purchase wholesale power more efficiently and effectively. As explained in its mission statement, Central “exists solely for the benefit of its members” and one of Central’s most important jobs is to plan for the future power supply needs of its member cooperatives.
About ElectriCities of North Carolina
ElectriCities of North Carolina, Inc., is the membership organization that provides power supply and related critical services to over 90 community-owned electric systems in North Carolina, South Carolina, and Virginia—collectively known as public power. ElectriCities manages the power supply for two power agencies in North Carolina and provides technical services to assist members in operating their electric distribution systems. ElectriCities also helps these locally owned and operated public power providers thrive today and in the future by delivering innovative services, including legislative, technical, communications, and economic development expertise.
Visit www.electricities.com to learn more about the benefits of public power and how ElectriCities helps communities keep the lights on through access to safe, reliable, and affordable energy.
VP, Communications, ElectriCities