The $26 billion Duke Energy-Progress Energy merger will not happen Sunday, as the companies hoped. The S.C. Public Service Commission has decided to hold a special meeting on Monday to act on the part of the merger it must approve.
The companies have said from the outset that South Carolina has no statutory authority to accept or reject the merger. But the state must approve a proposal that the power plants of Duke Energy Carolinas and Progress Energy Carolinas will operate as a single fleet.
The S.C. commission has questioned the power companies' reading of their authority. But if the companies are right, then they could go ahead and close the deal Sunday. But Progress spokesman Mike Hughes says the companies have no intention of doing so.
"Assuming a favorable vote by the commission, we plan to close the merger Monday afternoon," he says.
Public notice
The companies had hoped to close the deal before the end of last year. That fell through when federal regulators raised objections. Those were finally resolved just three weeks ago.
The clerk of the S.C. commission posted notice today that the board would meet at 11:30 a.m. Monday at its office in Columbia to discuss the companies' proposal to jointly operate their two utility fleets. The commission was under no obligation to act before the power companies' July 1 target date for closing the deal.
The N.C. Utilities Commission approved the merger earlier today.
Delaying the deal by one day is not a major issue for the companies. But they had hoped to be able to merge at the start of the third quarter for accounting reasons. It would simply be easier for earnings reports to have the two companies combined as the quarter started July 1.
John Downey covers the energy industry and public companies for the Charlotte Business Journal.
Source: http://feedproxy.google.com/~r/vertical_28/~3/69riulUG0Yk/sc-regulators-delay-duke-energy.html
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