Staff Report
Published Aug. 2, 2012
Duke Energy filed with state regulators to reduce electric rates on Wednesday, a byproduct of its merger with Progress Energy.
Rate reductionsIf approved by the commission, the new rates take effect Sept. 1. Progress Energy customers
Duke Energy customers
SOURCE: Duke Energy |
Regulators in North Carolina, meanwhile, said they hired a former federal prosecutor to investigate the merger and Duke’s firing of CEO Bill Johnson.
On Wednesday, Duke filed for rate reductions of $70 million with the North Carolina Utilities Commission and the Public Service Commission of South Carolina. The reductions would include an additional $19 million in annual customer savings by removing power plant capacity costs from customers’ base rates.
The reductions are part of a merger settlement with the Federal Energy Regulatory Commission to deliver $650 million in savings to customers over the next five years.
Also on Wednesday, the N.C. Utilities Commission said it hired Anton Valukas and the Jenner & Block law firm to investigate whether it was misled by Duke before the merger. The commission approved the merger in late June with the expectation that Johnson, CEO at Progress Energy, would run the combined company. But within hours of the merger closing, Duke Energy's board ousted Johnson.
Duke and Progress continue to operate as separate companies.
Previous coverage
Regulators OK Duke-Progress merger
Duke, Progress propose power-line expansion to address merger concerns
Duke, Progress file new merger plan
