On June 9, 2012, the Commission accepted the revised compliance filing by Duke Energy Corp. ("Duke") and Progress Energy, Inc. ("Progress") (collectively the "Applicants"), paving the way for full Commission approval of their merger. As reported in the April 2, 2012 edition of the WER, Applicants filed on March 26, 2012 proposed measures to alleviate the Commission's concerns with generation market power that might result from their merger. In last week's order, the Commission also accepted four power sales agreements submitted by the Applicants as part of those proposed mitigation measures.
In its order, the Commission accepted the long-term, "permanent" mitigation through transmission upgrades proposed by Applicants, but revised somewhat the "interim" mitigation through power sales proposed by Applicants. More specifically:
In addition, in order to ensure that the Applicants are moving toward completing the Transmission Expansion Projects, Applicants must provide the Commission with copies of all binding agreements needed to construct the Transmission Expansion Projects, as negotiated with American Electric Power and Dominion Virginia Power, within 15 days. The Commission also required an Independent Monitor to provide periodic reports on the status of the Transmission Expansion Projects, beginning no later than the last day of the third full month after the proposed transaction is consummated. Finally, the Applicants must hold transmission and wholesale requirements customers harmless from the costs of the Transmission Expansion Projects.
A copy of the Commission's June 9th Order is available here.
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