Friday, January 06, 2012
3rd Merger Attempt For Duke Energy & Progress Energy
Federal regulators have not questioned the merits of the proposed merger, which would create the nation's largest electric utility. Duke and Progress believe the efficiencies achieved through the merger would make it easier to pay for building new power plants, comply with costly environmental regulations and upgrade the aging power grid.
Executives at Duke and Progress had expected to have the merger completed in December, but they ran into snags when the Federal Energy Regulatory Commission (FERC) twice rejected their proposals. The federal commission said the companies must address concerns that the combined Duke would become so large it could manipulate wholesale electricity prices. FERC said they could sell off wholesale power, sell off stakes in their power plants or build more transmission lines. (Winston-Salem Journal, 1/5/2012)