Duke Energy

(DUK) - Get Report

agreed to buy an 825-megawatt power plant in Rockingham County, N.C., from

Dynegy

(DYN)

for $195 million.

The plant, which went into operation in 2000, consists of five 165 megawatt Westinghouse combustion turbine units capable of using either natural gas or oil to operate.

Duke Energy recently conducted a competitive Request for Proposals bidding process for peaking capacity to meet growing customer demand for electricity in North Carolina and South Carolina.

"We received a number of bids related to our recent RFP," said Duke Energy Carolinas President Ellen Ruff. "As we looked at the needs of our customers and our system and the cost of meeting those needs, it was clear the best overall deal was an outright purchase of the Rockingham plant."