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Duke/Progress submit new merger plan to Federal regulators
Written by David Horn   
Monday, 26 March 2012 10:33

(CHARLOTTE) -- Duke Energy and Progress Energy have filed a revised wholesale market power mitigation plan with the Federal Energy Regulatory Commission. The filing is part of the two utilities' proposed merger.

The filing asked federal regulators to approve the plan by June 8, 2012.  The companies are expected to seek final merger-related approvals from the North Carolina Utilities Commission and the Public Service Commission of South Carolina prior to the July 8, 2012, merger agreement termination date.

"We believe this plan addresses the FERC's concerns about market power in the Carolinas," said Jim Rogers, chairman, president and CEO of Duke Energy. "We have also had constructive discussions about the mitigation plan and other merger-related issues with the North Carolina and South Carolina consumer advocates over the past several weeks, and those discussions will continue while the FERC considers this plan. We continue working to move this process forward, gain the necessary regulatory approvals and complete the transaction."

The new plan proposes seven transmission projects, estimated to cost approximately $110 million. The transmission projects are expected to increase the proposed combined utility's ability to take in power from other sources. The companies believe this will enhance competitive power supply options in the Carolinas.

The proposal also features a two-to-three-year interim mitigation plan with must-deliver, must-take power purchase agreements signed with Cargill Power Markets, LLC; EDF Trading North America, LLC; and Morgan Stanley Capital Group, Inc. The companies will sell the power at critical off-peak or peak periods.

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