PLAINFIELD, Ind., (AFX) - Duke Energy Corp. has agreed to buy up to 100 megawatts of electricity generated by a northern Indiana wind farm that's set to become the state's first large-scale wind farm when it comes on line late next year.
If the 20-year agreement with Orion Energy LLC receives regulatory approval, Duke said the deal would be the first long-term purchase of wind power in Indiana.
Terms of the agreement were not released.
The utility's Duke Energy Indiana subsidiary finalized the agreement Wednesday with Oakland, Calif.-based Orion, which plans to erect at least 75 wind turbines capable of generating up to 130 megawatts -- enough to power between 30,000 and 40,000 homes.
Spokeswoman Angeline Protogere said the agreement allows Duke Energy Indiana to purchase up to 100 megawatts of electricity 'at any one time' from Orion once its wind farm is operating.
Gov. Mitch Daniels said in a statement that the deal would be Indiana's first significant long-term wind-energy purchase and boost state efforts to develop alternative energy sources.
The project, located on 10,000 acres, is expected to be on line in late 2007 in Benton County, which abuts Illinois and is northwest of Lafayette. Duke Energy Indiana has filed for approval of the purchase power agreement with the Indiana Utility Regulatory Commission.
Orion Energy began developing the Benton County project in late 2003, said Reid Buckley, Orion Energy's vice president for development.
Duke Energy Indiana President Kay Pashos said Orion's wind farm and the utility's power purchase would boost the local economy in an area 'where conditions make wind power possible.'
'It's consistent with the state's new strategic energy plan that encourages innovative 'homegrown' ways to generate power within the state,' Pashos said.
Shares of Duke Energy rose 48 cents to close earlier at $30 on the New York Stock Exchange.
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