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Duke Energy Carolinas said it will build a 620 MW gas-fired power plant costing $275 million, or roughly $444/kW.

The company's contract with Shaw Group Inc. calls for a combined cycle, natural gas-fired power plant at Duke's Buck Steam Station between Charlotte and Winston-Salem, N.C., according to papers filed with the SEC. The plant must be approved by the North Carolina Utilities Commission, which is expected to act in the next four or five weeks.

Duke says it plans to start the plant in simple cycle mode by the summer of 2010 and combined cycle mode a year later.

Duke said that two older, coal-fired units will be retired at the Buck Steam Station.

The utility said it also plans to add a similar gas-fired plant at its Dan River Steam Station, an 800 MW coal-fired power plant already under construction and a 1,117 MW nuclear power plant proposed for operation in 2018 at a South Carolina site.

Nevada Power inks deal for gas-fired station

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