Progress Energy and Duke Energy plan new merger filing this month

John Downey

Senior Staff Writer - Charlotte Business Journal

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Duke Energy? ? Duke Energy Latest from The Business Journals Regulators clear Duke Energy to close Indiana coal unitsCharlotte Motor Speedway to get 500-kw solar projectDuke Energy dials up its giving with United Way boost Follow this company and Progress Energy? ? Progress Energy Latest from The Business Journals Slideshow: The best performing Triangle stocks in 2011With Progress sale, Raleigh to lose major HQRed Hat commits to build company in Triangle Follow this company expect to file a response to federal regulators this month offering a new proposal to resolve wholesale-market competition issues with their proposed $26 billion merger.

Progress Chief Executive Bill Johnson says staffers and consultants for both power companies are working on the highly technical information needed to make the response. He does not expect the concerns raised by the Federal Energy Regulatory Commission? ? Federal Energy Regulatory Commission Latest from The Business Journals With Progress sale, Raleigh to lose major HQProgress Energy CEO to discuss Duke merger at forumProgress Energy CEO to discuss Duke merger at forum Follow this company to derail the merger.

?Anything can happen,? he says. ?But I do think we will find solutions that will met the requirements of the FERC.?

Johnson talked about the filing after a presentation Tuesday at the Economic Forecast Forum sponsored by the N.C. Chamber and the N.C. Bankers Association at the Sheraton Imperial Hotel in Research Triangle Park.

Cede control

Johnson says the companies are concentrating on methods they could use to cede control of several hundred megawatts of power capacity during the summer and winter peak demand seasons in the Carolinas without actually selling plants.

That would meet what appeared to be the principal objection of federal commissioners in their Dec. 14 order rejecting the first proposal the companies made. FERC has said a virtual divestiture ? in which the companies would make power capacity available for sale without selling the plants ? could be an acceptable proposal. But the commission said the original proposal kept too much authority over the sales in the hands of the merged companies.

Duke and Progress are looking at ways to offer firm sales ? power sold in advance, with long-term contracts ? that would ensure that the merged company could not manipulate the wholesale markets in the Carolinas.

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John Downey covers utilities, public companies and the courts for the Charlotte Business Journal.

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