CLAUDVILLE, Va. — After being owned by the city of Danville for more than 80 years, the Pinnacles hydroelectric complex in Patrick County has been acquired by an entity even farther away, in Scottsdale, Arizona.
The recent sale includes the Pinnacles Hydro Plant at the end of Kibler Valley Road in Claudville — where a popular whitewater event has originated along the Dan River in July — and two dams on its upper reaches toward Meadows of Dan.
Talbott Dam and Townes Dam are 120-foot structures built to store water that is piped several miles down the mountain to the powerhouse to generate electricity, while also serving as recreational resources including fishing and hiking.
The Pinnacles Hydro Complex, spread over about 3,600 acres, was sold by Danville Utilities to Northbrook Energy in Arizona for a reported $8.2 million.
As is the case with such major transactions, it was about the money. Reports say the city of Danville plans to use parts of the sale proceeds for electrical facilities in that city, including a new substation to power a casino there which was approved by voters in a referendum last November.
Meanwhile, it is expected to be business as usual for the Pinnacles Hydro Plant, Phillip Slate, the manager of the facility, said Monday.
Electricity will continue to be produced there for transmission to Danville about 80 miles away.
“So our delivery point for the power will still be Danville, Virginia,” Slate added. The six employees of the operation also are still on the job, he said.
Another finance-related reason for the sale to Northbrook Energy which has emerged surrounds the need to make costly upgrades at the Pinnacles complex that was built in 1938 to meet all of Danville’s electrical needs.
Over the years as a result of other electricity-generating facilities coming on board, the 10-megawatt Claudville plant presently supplies only about 2.5% of that city’s usage, serving as a boosting source during times of high demand.
The city of Danville’s sale of the property in Patrick County also will allow it to avoid the expense of tighter federal regulations on hydroelectric facilities.
Danville Utilities has contracted to buy power produced at the Kibler plant while owning the transmission lines from there to Danville, according to published reports from Virginia.
A telephone message left at Northbrook Energy — seeking comment on any plans it has for the Pinnacles hydroelectric complex beyond that — was not returned.
Northbrook is a privately held independent power producer that has been in the hydroelectric business for more than 30 years, according to the company’s website.
It is focused on acquiring renewable assets and specializes in enhancing the value of hydro plants, operating such facilities in 12 states.
In May 2018, Duke Energy Carolinas announced that it was selling five small hydroelectric plants in the Western Carolinas region to Northbrook Energy.
A Northbrook official said then the company was looking forward to increasing its presence in the region by expanding employment opportunities and its renewable energy holdings.
Source: https://www.mtairynews.com