Duke, Progress file revised power mitigation plan for merger

Duke Energy (NYSE: DUK) and Progress Energy (NYSE: PGN) filed a revised wholesale market power mitigation plan with the Federal Energy Regulatory Commission (FERC) as part of their proposed merger, expected to close the first week of July 2012.

The plan provides more details on the notice of intent to file a mitigation plan submitted to the North Carolina Utilities Commission (NCUC) on Feb. 22. It requests that FERC issue orders approving the mitigation plan, the Joint Dispatch Agreement and the Joint Open Access Transmission Tariff within 60 days of the filing, and no later than June 8, 2012. The FERC filing also features a permanent mitigation plan with seven transmission projects, estimated to cost $110 million.

The companies intend to seek final merger-related approvals from the NCUC and the Public Service Commission of South Carolina (PSCSC) prior to the July 8, 2012, merger agreement termination date. For planning purposes, the companies are targeting closing the merger on July 1.

The NCUC must also approve the merger and the Joint Dispatch Agreement in the Carolinas. The PSCSC must approve the Joint Dispatch Agreement.

The proposal also features a two-to-three-year interim mitigation plan with must-deliver, must-take power purchase agreements (PPAs) signed with Cargill Power Markets LLC; EDF Trading North America LLC; and Morgan Stanley Capital Group Inc. The companies will sell 800 MW during summer off-peak hours, 475 MW during summer peak hours, 225 MW during winter off-peak hours, and 25 MW during winter peak hours. The agreements, or similar power purchase agreements, will be in place from the date the merger closes until the transmission projects are operational.

Potomac Economics will serve as Independent Monitor of the interim PPAs and a component of the permanent mitigation plan.

To date, the companies have received merger-related approvals from, or met the requirements of the U.S. Nuclear Regulatory Commission, Kentucky Public Service Commission, and the shareholders of both companies. The companies have also met their obligations with the U.S. Department of Justice under the Hart-Scott-Rodino Act.

Read more mergers and acquisitions news

Sponsored by FLSmidth
Related Articles

SunEdison to acquire 1,000 energy storage systems, bring electricity to rural India

SunEdison, Inc. (NYSE: SUNE) plans to purchase up to 1,000 vanadium flow batteries (more than 100 MWh) from Imergy Power Systems to store solar-generated electricity for its rural electrification and solar powered mini-grid projects in India.

13 community meetings planned for Hawaii energy merger

NextEra Energy and Hawaiian Electric will be hosting 13 community meetings across Hawaii to discuss the companies' pending merger.

Follow Power Engineering on Twitter
Latest News
08/26 Henry Hub Average Natural Gas Spot Prices

08/26 Henry Hub Average Natural Gas Spot Prices

The Henry Hub is the pricing point for natural gas futures contracts traded on the New York M...
Ameren Missouri moving spent nuclear fuel to dry storage casks Callaway Energy Center

Ameren Missouri to begin moving spent nuclear fuel

Ameren Missouri’s Callaway Energy Center will begin this week moving spent nuclear fuel to ne...
Millstone 2 nuclear unit has corrective actions from NRC

NRC issues corrective actions against Millstone 2 nuclear unit

FP&L to buy and sell Cedar Bay coal-fired power plant

FP&L to buy, close coal-fired power plant

Florida Power & Light will buy and shut down a coal-fired power plant under a settlement ...
The Weekly Coal Production Report has been updated for the week ended Aug 22, 2015.

08/22 Weekly Coal Production Report

The Weekly Coal Production Report has been updated for the week ended Aug 22, 2015.

Moody’s affirms Southern ratings, but changes outlook to negative

Deal for AGL comes at time of increasing "risk profile" for Southern, Moody finds

Now that Southern (NYSE:SO) has announced plans to buy AGL Resources (NYSE:GAS), Moody’s Inve...
Federal judge dismisses most coal-fired emissions claims against Luminant

Judge rejects most claims in federal NSR lawsuit against Luminant

A federal judge on Aug. 21 dismissed most of the claims of the U.S. Environmental Protection ...
IAEA, Kazakhstan to establish low-enriched uranium bank

Kazakhstan to host international uranium bank

The International Atomic Energy Agency and Kazakhstan have signed an agreement to establish a...
Power Engineering Current Issue
03/01/2015
Volume 119, Issue 3
1503pe-cover
Products Showcase
Dynamic Fluoride Ion cleaning DFIC of industrial natural gas turbines Hi-Tech Furnace Systems

Dynamic Fluoride Ion Cleaning of IGT Parts

The Dynamic Fluoride Ion Cleaning (DFIC) Process from Hi-Tech Furnace Systems is able to clean deep, narrow cracks of oxides by cycling between negative, atmospheric, and positive pressure.

Archived Articles

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015

Buyers Guide Categories

Power Industry Wire News

PyroGenesis Canada Inc. to Present at the 4th Annual Liolios Gateway Conference on September 10, 2015

PyroGenesis Canada Inc. to Present at the 4th Annual Liolios Gateway Conference on Sept...

American Power Group Announces Completion of a $3.25 Million Term Loan for the Purchase of Next Generation Natural Gas Flare Capture and Recovery Systems

American Power Group Announces Completion of a $3.25 Million Term Loan for the Purchase...

Anpath Group Signs Merger Agreement With Q2Power

Anpath Group Signs Merger Agreement With Q2Power

Cimation Selected by Shell for Global Cybersecurity Program Roll-Out

Cimation Selected by Shell for Global Cybersecurity Program Roll-Out

Nuclear, LNG Export Projects Dominate Top 10 Capital-Spending Plans in U.S. Southeast Region, an Industrial Info News Alert

Nuclear, LNG Export Projects Dominate Top 10 Capital-Spending Plans in U.S. Southeast R...

Power Engineering

Article Archives for Power Engineering Magazine

Continuing Education

Professional Development Hours

To access a course listing associated to a specific topic listed below, click on the topic of choice from the list below.

Latest Energy Jobs

View more Job Listings >>