NCMPA1 and Duke Energy Partner on Commercial Solar Project in Shelby, N.C.

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Apr 20, 2010, 08:00 ET

CHARLOTTE, N.C., April 20 /PRNewswire-FirstCall/ -- North Carolina Municipal Power Agency Number 1 (NCMPA1) and its 19 member organizations will soon begin providing homes and businesses in Shelby, N.C., with clean, renewable solar energy produced by a photovoltaic project recently acquired by a Duke Energy (NYSE: DUK) commercial business unit.

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NCMPA1, which serves the city of Shelby, will buy all of the output from the one-megawatt (MW) Shelby Solar Project under the terms of a 20-year power purchase agreement with Duke Energy Generation Services (DEGS), a Duke Energy Commercial Businesses unit.

NCMPA1 will also receive all associated renewable energy credits (RECs) from the project. These RECs help the power agency meet the N.C. Renewable Energy and Energy Efficiency Portfolio Standard requirement to obtain 0.2 percent of its energy through solar resources by 2018.

"This agreement is a great start to the development of our solar resource portfolio," said Graham Edwards, CEO of ElectriCities, the management services organization for NCMPA1. "Solar power is a great complement to our existing power supply portfolio, providing peak power during the daylight hours, while also helping to maintain our very small carbon footprint."

The city of Shelby is providing the land for the project, which will be located near the Shelby-Cleveland County Regional Airport. The Shelby City Council has approved leasing the 10-acre site for the project.

"The City Council was excited to review and approve this solar project," said Shelby Mayor Ted Alexander. "We are very pleased that the city of Shelby can contribute to a project in support of NCMPA1's renewable energy efforts. This project demonstrates that Shelby is committed to renewable energy and to attract like-minded businesses and industry. It is a boost to the economic development of our community."

The Shelby Solar Project will be DEGS' first renewable energy facility in North Carolina.

"Given the solar farm's close proximity to our headquarters in Charlotte, N.C., adding the Shelby Solar Project to Duke Energy's growing commercial renewable power portfolio is an especially meaningful milestone for our company," said DEGS President Wouter van Kempen.

DEGS acquired the project from SunPower Corp. (Nasdaq: SPWRA, SPWRB), a manufacturer of high-efficiency solar cells, solar panels and solar systems, which designed and is installing the photovoltaic system at the Shelby site. The project, which will consist of 4,500 ground-mounted crystalline silicon panels, will use SunPower Tracker® technology. The Tracker uses a global positioning satellite system to follow the sun's movement during the day, increasing sunlight capture by up to 25 percent over conventional fixed-tilt systems, while significantly reducing land use requirements.

The Shelby Solar Project is expected to be completed and energized by late May 2010. The facility's one MW direct current output – equivalent to 0.94 MW alternating current – will generate enough electricity to power approximately 140 homes on an annual basis.

No financial terms were disclosed.

The Shelby Solar Project will be DEGS' second commercial solar power project. Earlier this year, DEGS acquired the 16-MW (14-MW alternating current) Blue Wing Solar Project in San Antonio, Texas. Blue Wing is scheduled to begin producing electricity for San Antonio-based CPS Energy, one of the largest municipality-owned utilities in the U.S., by the fourth quarter of 2010.

DEGS' renewable energy initiatives are separate from the activities of Duke Energy Carolinas, which is part of Duke Energy's regulated business. Duke Energy Carolinas is installing solar panels on select business and residential customers' properties as part of a $50 million program approved by the North Carolina Utilities Commission in May 2009.

About NCMPA1

North Carolina Municipal Power Agency Number 1 (NCMPA1) - More than 70 North Carolina public power communities, municipally owned and operated electric systems, serve more than 500,000 residential, commercial and industrial customers in North Carolina. Most have been providing reliable electric service for 100 years or more. NCMPA1 has 19 member cities in the western part of North Carolina. More information about NCMPA1 is available at www.ncpublicpower.com.

About DEGS and Duke Energy

Duke Energy Generation Services is a leader in developing innovative renewable energy solutions, including wind, solar and biopower projects. DEGS builds, owns and operates electric generation for large energy consumers, municipalities, utilities and industrial facilities. DEGS is also working to build commercial transmission capacity to help the U.S. meet its energy needs of the future.

Headquartered in Charlotte, N.C., Duke Energy is a Fortune 500 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. To learn more and contribute to the discussion about the energy issues of today and the possibilities of tomorrow see www.sheddingalight.org.