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City Council voted Tuesday night to sell the Pinnacles hydroelectric complex to Northbrook Energy for $8.2 million and to purchase the energy, capacity and renewable energy credits from the facility.
The sale will require approval from the Federal Energy Regulatory Commission.
Northbrook Energy is a privately held, independent power producer that has been in the hydroelectric energy industry for more than 30 years. The company, which operates hydro assets in 12 states, recently purchased five hydroelectric facilities from Duke Energy in North Carolina and South Carolina.
The Pinnacles complex is located in Patrick County and consists of approximately 3,600 acres of City-owned property. At the complex, the City manages two 120-foot dams that store water for power generation.
The facilities were constructed in 1938 in order to supply 100% of Danville electric needs. Today, the 10-megawatt facility is used as a peaking resource during periods of high demand and provides approximately 2.5% of the City’s electric needs.
Over the past few years, the cost to operate these facilities has risen significantly, so the transaction will save Danville Utilities customers money over time while ensuring a continued source of clean energy. Also, the sale of the Pinnacles facility will assist Danville Utilities in accelerating capital improvement projects and ensuring system reliability.
A public hearing was held prior to the vote, but no citizen stepped forward to speak.