Duke Energy and Progress Energy’s proposed merger will create the United States largest utility. If approved, the new company will serve over 7 million customers in North and South Carolina, Florida, Kentucky, Indiana and Ohio. Though most believe the merger will be implemented, regulatory delays have forced the companies to extend the deadline for the agreement by 5 months from the initial termination date. The proposed USD26 million deal has been opposed by many who believe a monopoly will be created, promoting an anti-competitive situation in the state.
The Federal Energy Regulatory Commission conditionally authorized the merger but stated that it cannot unconditionally approve the proposal until Duke and Progress Energy are able to provide a proposal to remedy the potential harmful effects on competition. A proposal for remedy filed in December was rejected leading to the recent ruling to extend the deadline. The filing of a new mitigation proposal to address the concerns is expected.
Raleigh, N.C. based Progress services 3.1 million customers with USD32.7 billion in assets and USD10 billion in revenue. Charlotte, N.C. based Duke, services 4 million customers with USD57.9 billion in assets and USD12.7 billion in revenue. Together they will form Duke Energy Corp., headquartered in Charlotte with operations in Raleigh.