Duke Energy to acquire wind power firm for $320 million

CHARLOTTE, N.C. — Duke Energy is investing $320 million to produce more power through wind power, buying Catamount Energy Corporation.

The deal will provide Duke (NYSE: DUK) with 300 megawatts of power at existing Catamount sites. Catamount, which has operations in the United States and the United Kingdom, has another 1,750 megawatts of projects under development.

The addition of some 2,000 megawatts in wind power would give Duke an interest in projects that are developing more than 7,000 megawatts of potential wind-based projects, according to the company.

One thousand megawatts of power is enough to provide electricity for approximately 800,000 homes over a one-year time frame, according to a Duke spokesperson.

Duke is acquiring Catamount from Diamond Castle Holdings. The deal includes assumption of $80 million in debt.

"This acquisition reinforces Duke Energy's commitment to clean, renewable energy as a major component of electricity generation throughout the U.S.," said Wouter van Kempen, president of Duke Energy Generation Services. The unit focuses on acquisition and development of renewable energy.

The investment in Catamount reflects Duke’s growing commitment to renewable energy as well as standard means of producing electricity. Duke recently disclosed plans to launch a pilot project that will put solar power panels on some 850 homes and businesses in the Carolinas. The company also has contracted to buy the electrical output from a solar panel facility in Davidson County.

A year ago, Duke bought Tierra Energy, a wind power developer in Texas. By the end of this year, Tierra Energy is expected to have 500 megawatts of power capacity with more than 5,000 megawatts of projects under development in 12 states.

Duke also intends to build an 800 megawatt coal-fired plant west of Charlotte.

Catamount, which launched in 2002, has interests in one of the largest wind farm projects in the world, the so-called Sweetwater project in Texas.

Duke Energy has some 4 million customers across the Carolinas, Indiana, Kentucky and Ohio.