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Energy company mergers see positive development

Monday, June 11, 2012

Duke Energy, one of the largest electric power holding companies in the United States, along with Progress Energy, a Fortune 500 energy company, are considering the Federal Energy Regulatory Commission's conditional merger orders' positive developments.

The June 8 conditional orders from the FERC are considered to be a forward development in allowing the companies to close their proposed merger by July 1, which was the original target date.

The companies have already completed their evaluation of the conditions expressed in the order and are expected to make a compliance filing with the FERC within the next two weeks as per request.

"We are pleased that the FERC has conditionally approved the merger, our Joint Dispatch Agreement and Joint Open Access Transmission Tariff," said Jim Rogers, chairman, president and CEO of Duke Energy. "We will quickly complete the evaluation of the conditions in the orders while working to obtain the remaining regulatory approvals to close the merger on July 1."

In addition, the two companies will attempt to work in securing a final merger-related approval from the North Carolina Utilities Commission as well as from the Public Service Commission of South Carolina as soon as possible in order to reach the final stages of the merger by the targeted closing date.

"Receiving the FERC's conditional orders last Friday is a major milestone for this transaction," said Bill Johnson, chairman, president and CEO of Progress Energy. "Both companies have accelerated the integration planning efforts necessary to complete this transaction by July 1 and begin to deliver the substantial benefits of the merger as soon as possible."

Although the target date is expected to be hit, the companies are also relying on the remaining state regulatory approvals in addition to submitting further compliance filings with the FERC in meeting all conditions required to make the merger official.

Duke Energy has also been in the news recently for recently completing the first Kansas wind farm along with the help of Sumitomo Corporation of America. The completed wind farm was the first of two known as the Cimarron II Windpower Project located in Gray County. Duke Energy Renewabls sold 50 percent stake in Cimarron II as well as the 168-MW Ironwood Windpower Project in Ford County to Sumitomo Corporation in April.

Investors should be aware of how mergers affect the stock market and they should also know about their online stock trading opportunities. 

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