The City Council for the city of Danville in Virginia has voted to sell the 10-MW 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.
The Pinnacles complex is located on the Dan River in Patrick County and consists of about 3,600 acres of city-owned property. The city manages two 120-foot dams that store water for power generation.
The facilities were constructed in 1938 to supply 100% of Danville electric needs. Today, the facility is used as a peaking resource during periods of high demand and provides about 2.5% of the city’s electric needs.
Over the past few years, the city says 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.
Northbrook Energy is a privately held, independent power producer that has been in the hydroelectric energy industry for more than 30 years. The company operates hydro assets in 12 states and recently purchased five hydroelectric facilities from Duke Energy in North Carolina and South Carolina.