Skip to main content

Duke Energy to Merge With Progress Energy

large_duke-energy That’s the news. Here are some details:

Duke's offer was a 6.4 percent premium over the last 20 trading days, the company said, and the deal would be accretive to Duke's earnings in the first year.

The transaction would create an industry giant with approximately 7.1 million electricity customers in North Carolina, South Carolina, Florida, Indiana, Kentucky and Ohio, and 57,000 megawatts of generating capacity.

And here’s what the proposed merged company wants to do:

The two North Carolina companies will serve more than 7 million electricity customers, and will use the opportunity to eliminate redundancies in their service areas to focus on beefing up their nuclear power offerings. Duke and Progress have long been expanding their nuclear ambitions, and say the new combined company will have the largest regulated nuclear fleet in the U.S.

Here are comments from Duke Energy’s Jim Rogers (from Duke’s press release):

“Our industry is entering a building phase where we must invest in an array of new technologies to reduce our environmental footprints and become more efficient,” said Jim Rogers, chairman, president and chief executive officer of Duke Energy. “By merging our companies, we can do that more economically for our customers, improve shareholder value and continue to grow.

“Combining Duke Energy and Progress Energy creates a utility with greater financial strength and enhanced ability to meet our challenges head-on,” Rogers continued.

And Progress Energy’s Bill Johnson (same source):

“This combination of two outstanding companies is a natural fit,” said Bill Johnson, chairman, president and chief executive officer of Progress Energy. “It makes clear strategic sense and creates exceptional value for our shareholders. Together, we can leverage our best practices to achieve even higher levels of safety, operational excellence and customer satisfaction, and save money for customers by combining our fuel purchasing power and the dispatch of our generating plants.

“This merger also provides predictable earnings and cash flows to support our dividend payments to shareholders,” Johnson added. 

As noted above, both companies are headquartered in North Carolina and their nuclear plant holding reflect this. Duke Energy owns Catawba (S.C.), McGuire (N.C.) and Oconee (S.C.). Progress Energy owns Brunswick (N.C.), Crystal River (Fla.), Harris (N.C.) and Robinson (S.C.)

Comments

Anonymous said…
It's still very much on the drawing board, but there was talk of Duke Energy partnering with Areva to build a new nuclear plant in Southern Ohio, at the site of a former enrichment facility in Piketon, OH.

I hope any merger doesn't derail those plans. I think more nuclear generating capacity in Ohio will probably be a good thing for our state.
Anonymous said…
Thank goodness. Someone's got to knock that chip of Exelon's shoulder. And, being in the regulated south, this utility will have quite the advantage with respect to - among other things - a new-build program.
Chad said…
I fear this may not be good news for new nuclear. Duke already had plans with a SC AP1000 and the Areva plant in Ohio. Progress "has" an EPC for a FL AP1000 and another COLA for a NC AP1000. Both have shown interests in finding parterns for their new nuclear because of forcast changes in electrical demand. Thus, I think one of these Carolina plants will be on the chopping block.


Furthermore, Jim Rodgers is a big supporter of new nuclear. His new role seems like a transisition to retirement. Not to say Bill Johnson is not big on nuclear, he just has not been as vocal about it to the public.
Anonymous said…
Lots of Progress nuclear staff will be on the chopping block. Progress new plants will take a back seat to Duke new plants, if not scrapped. Customers will eventually see rates rise due to new market power dynamics. I am not optimistic about this merger. More power to the power company means less power to the employees, regulator, and rate payers. Possibly good for stock price, but not for others that are not shareholders.

Popular posts from this blog

Sneak Peek

There's an invisible force powering and propelling our way of life.
It's all around us. You can't feel it. Smell it. Or taste it.
But it's there all the same. And if you look close enough, you can see all the amazing and wondrous things it does.
It not only powers our cities and towns.
And all the high-tech things we love.
It gives us the power to invent.
To explore.
To discover.
To create advanced technologies.
This invisible force creates jobs out of thin air.
It adds billions to our economy.
It's on even when we're not.
And stays on no matter what Mother Nature throws at it.
This invisible force takes us to the outer reaches of outer space.
And to the very depths of our oceans.
It brings us together. And it makes us better.
And most importantly, it has the power to do all this in our lifetime while barely leaving a trace.
Some people might say it's kind of unbelievable.
They wonder, what is this new power that does all these extraordinary things?

A Design Team Pictures the Future of Nuclear Energy

For more than 100 years, the shape and location of human settlements has been defined in large part by energy and water. Cities grew up near natural resources like hydropower, and near water for agricultural, industrial and household use.

So what would the world look like with a new generation of small nuclear reactors that could provide abundant, clean energy for electricity, water pumping and desalination and industrial processes?

Hard to say with precision, but Third Way, the non-partisan think tank, asked the design team at the Washington, D.C. office of Gensler & Associates, an architecture and interior design firm that specializes in sustainable projects like a complex that houses the NFL’s Dallas Cowboys. The talented designers saw a blooming desert and a cozy arctic village, an old urban mill re-purposed as an energy producer, a data center that integrates solar panels on its sprawling flat roofs, a naval base and a humming transit hub.

In the converted mill, high temperat…

Seeing the Light on Nuclear Energy

If you think that there is plenty of electricity, that the air is clean enough and that nuclear power is a just one among many options for meeting human needs, then you are probably over-focused on the United States or Western Europe. Even then, you’d be wrong.

That’s the idea at the heart of a new book, “Seeing the Light: The Case for Nuclear Power in the 21st Century,” by Scott L. Montgomery, a geoscientist and energy expert, and Thomas Graham Jr., a retired ambassador and arms control expert.


Billions of people live in energy poverty, they write, and even those who don’t, those who live in places where there is always an electric outlet or a light switch handy, we need to unmake the last 200 years of energy history, and move to non-carbon sources. Energy is integral to our lives but the authors cite a World Health Organization estimate that more than 6.5 million people die each year from air pollution.  In addition, they say, the global climate is heading for ruinous instability. E…