Duke Halts Construction of Western Power Plants

Duke Energy Corp., the second-largest U.S. utility owner, stopped work on two Western power plants worth $550 million because they wouldn’t be profitable enough amid an expected decline in electricity prices.

The plants in Deming, N.M., and Satsop, Wash., were being built by Duke/Fluor Daniel, a construction venture with Fluor Corp., Duke Chief Financial Officer Robert Brace said. He added that a decision on the projects will be made within weeks.

The $300-million western Washington project and the $250-million southwest New Mexico plant each would produce 600 megawatts, enough to light 960,000 homes. The projects were set to open in the second half of 2003 and were about 40% complete.

Fluor, which is based in Aliso Viejo, said the decision to suspend construction of the plants would not have a material effect on its 2002 financial results.

Shares of Charlotte, N.C.-based Duke rose 81 cents to $28.36 on the NYSE. They have fallen 28% in the last year. Fluor fell $3.27 to $27.66 on the NYSE. The stock has fallen 32% in the last year.