Regulator Gives Conditional Approval To Progress Energy, Duke Energy Deal

By Tampa Bay Business Journal

The Federal Energy Regulatory Commission gave conditional approval to the planned merger between Duke Energy and Progress Energy.

However, regulators agreed with North Carolina municipal officials that the proposed merger would damage competition for wholesale power sales in the Carolinas, according to a report in the Charlotte Business Journal.

The FERC give the power companies 60 days to propose measures to protect competition if they want to proceed. Opponents would have 30 days to respond, and the commission would decide whether the proposed measures are adequate.

That schedule could push the completion of the merger into next year and past the companiesâ¿¿ stated goal of closing the deal in December. Duke spokesman Tom Williams said the companies think they can hit their target.

Failing anticompetitive ⿿screens⿝ is not unusual, according to a report from Baird Equity Research Analyst David E. Parker.

⿿We expect this issue to be quickly resolved similar to other completed mergers,⿝ Parker wrote in an Oct. 3 report.

Progress Energy (NYSE: PGN), headquartered in Raleigh, N.C., is the parent company of Progress Energy Florida, headquartered in St. Petersburg. Progress Energy Florida provides electricity and related services to more than 1.6 million customers in St. Petersburg, Clearwater and the central Florida area surrounding Orlando.

Duke Energy (NYSE: DUK) is headquartered in Charlotte, N.C.

Copyright 2011 American City Business Journals

http://www.bizjournals.com/tampabay/news/2011/10/03/regulator-gives-conditional-approval.html?ana=thestreet

Copyright bizjournals.com 2010

More from Commodities

Watch This If You're Wondering How Much Gold to Have and When to Sell

Watch This If You're Wondering How Much Gold to Have and When to Sell

How Can Gold Continue This Upward Momentum?

How Can Gold Continue This Upward Momentum?

Week Ahead: Investors Keep Economy in Check as Trade, North Korea Talks in Limbo

Week Ahead: Investors Keep Economy in Check as Trade, North Korea Talks in Limbo

Oil Rally Steadies Even as Potential Supply Disruptions Persist

Oil Rally Steadies Even as Potential Supply Disruptions Persist

The Outlook for Gold Prices Looks Awful Even With 10-Year Yields Above 3%

The Outlook for Gold Prices Looks Awful Even With 10-Year Yields Above 3%