The rainfall in the utility’s region was down almost 40%, or approximately 58mm, in 2007. Duke Energy Carolinas said much of its territory continues to be ranked as being in the worst category set by the US Drought Monitor of ‘exceptional drought’.
Consequently, the utility said it has been reducing its hydro operations as part of measures to manage resources in the drought conditions. The company has a diverse generation mix.
Financial terms of the power purchase options for 520MW of capacity were not disclosed and the utility said in a statement that the details were confidential. But it has applied to North Carolina Utilities Commission (NCUC) to recover the costs associated with the power purchase.
According to the US Dept of Commerce, National Oceanic and Atmospheric Administration, last year was the second driest for the south east US region in 113 years, the direst in the state of North Carolina and fifth driest in South Carolina.
