Duke Energy to buy Progress Energy for $13.7 billion

[HydroDave63]

Duke Energy said on Monday it agreed to buy Progress Energy Inc for $13.7 billion in stock, creating the largest U.S. power company if it wins approval from regulators in North and South Carolina.

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.

http://www.reuters.com/article/idUSTRE7092NK20110110?feedType=RSS&feedName=topNews

[Rennhack]

Thanks for the news.  If it goes through, it means one more set of outages will finally align.

[cincinnatinuke]

This is just huge man!  From what I could tell from this list, the deal would give the combined company 12 nuclear reactors:

http://www.nrc.gov/reactors/operating/list-power-reactor-units.html

That is one heck of a fleet.  Now I wonder if others will follow since I read this AM that 10% of all M&A activity for 2010 was from the Energy and Utility sector.

[Sun Dog]

This is just huge man!  From what I could tell from this list, the deal would give the combined company 12 nuclear reactors:

http://www.nrc.gov/reactors/operating/list-power-reactor-units.html

That is one heck of a fleet.  Now I wonder if others will follow since I read this AM that 10% of all M&A activity for 2010 was from the Energy and Utility sector.

This means when Exelon buys Duke they will manage a total of 29 reactors!

[HydroDave63]

This means when Exelon buys Duke they will manage a total of 29 reactors!

Considering the Axe-A-Lot business model, I think that acquisition would be nicknamed the Nuclear Anschluss

[Incline]

14 years ago I heard this rumor in the Duke System, today it came true! Now ALL the Carolinas will pay low, good folks, fun plants, but low pay.

I don't think Exelon can afford Duke, they couldn't even take over a company that has partial interest in a nuke plant. Plus they put their Victoria County project on hold indefinitely. I don't see it happening anytime in the future at all. 

[redline]

This merger will mean Duke is now untouchable...no Exelon, no Southern Co. Although they have tried to set the standards for the industry for years, Exelon has pretty much held that distinction. Duke will soon be setting the standards we will live by in the industry. Look for Southern Co to move in on SCANA real quick as if they don't Duke will get them next and Own the southeast.
As far as outages aligning be careful what you ask for. Progress has been resource sharing for a while now and Duke is heading that way. Look for contract employee numbers to drop significantly once outages start to line up

[HydroDave63]

This merger will mean Duke is now untouchable...no Exelon, no Southern Co. Although they have tried to set the standards for the industry for years, Exelon has pretty much held that distinction. Duke will soon be setting the standards we will live by in the industry. Look for Southern Co to move in on SCANA real quick as if they don't Duke will get them next and Own the southeast.
As far as outages aligning be careful what you ask for. Progress has been resource sharing for a while now and Duke is heading that way. Look for contract employee numbers to drop significantly once outages start to line up

Wouldn't shared resources lead to more in-house jobs with benefits?

[redline]

Wouldn't shared resources lead to more in-house jobs with benefits?

Sure would and both companies are presently hiring. Most new hires though will be newbys right out of school. Doesn't do much for the current workforce. My opinion for several years is that folks should get off the road because it aint what it used to be and it's getting worse every year. I enjoyed it for a long time, but never (did I say never) again!

[Smart People]

   An Email I received



Progress Energy
   


To our customers,

By now, you've likely heard about the proposed merger of Progress Energy and Duke Energy. At Progress Energy, we are excited about the many potential benefits for you and our community.

This merger will bring together two companies with a shared commitment to outstanding reliability, customer service and environmental responsibility. By combining our experience and resources, we will be even better equipped to deliver the clean, reliable, affordable power you need today – and far into the future.

We expect the transaction to close near the end of the year and some of the first benefits to you will come from increased efficiencies, which will improve service while helping to keep costs down. For example, our combined companies will be able to more efficiently manage fuel purchases and operate our power systems as a larger, single fleet, resulting in savings on your bill.

Over the long term, being part of a larger company will enable us to continue our efforts to modernize the electric grid, implement additional environmental upgrades and replace aging infrastructure while minimizing the impact on your rates.

As you can tell, we anticipate many advantages for you in the combined strength of our proposed company. In the meantime, rest assured that your service, including your account information and the ways you contact us, have not changed. We will continue to update you as we seek regulatory approval for the merger and begin planning the integration of our two companies.

Thank you for taking the time to read this letter – and thank you for being a Progress Energy customer. We appreciate the trust you have in us, and we know it's a trust we have to earn every day.

[spentfuel]

I started to post this topic yesterday but was to busy

Thanks for the news.  If it goes through, it means one more set of outages will finally align.

For what its worth Duke and Progress have been doing some resource sharing for outage dates for a time now or at least thats the rumor I hear.  12 units and also control over three COL's and at least two ESP's.

As far as opening up new jobs perhaps in the future but first there will likely be a lot of cuts on both sides of the fence due to consolidation and so on.  Either case should take a year or so to jump the hurdles before much happens.

my two cents

sf

[rlbinc]

Maybe Duke can teach them something.

[Contract SRO]

12 units and also control over three Col's and at least two Esp's.

As far as opening up new jobs perhaps in the future but first there will likely be a lot of cuts on both sides of the fence due to consolidation and so on.  Either case should take a year or so to jump the hurdles before much happens.

my two cents

sf

You are right and there is a lot to deal with from the Progress units.  Brunswick in trouble, Robinson in trouble, & Crystal River has not run in over a year.  Sharon Harris is the cream of the crop.  Both companies new construction has either gone into a slowdown or on hold because of financial demands of new construction.  I hope this becomes one of the best utilities in the country but there is a lot to deal with before it gets some of the problems resolved.

[redline]

Duke believes in being the best and they are not afraid to spend money to get there. Look for those Progress units to slowly move into that coveted (by some) INPO 1 status.

[OldHP]

Duke believes in being the best and they are not afraid to spend money to get there. Look for those Progress units to slowly move into that coveted (by some) INPO 1 status.

Agreed!  I spent many years with Duke and the "end result" was the bottom line.

Duke looked at taking over the then "CP&L" several years back, the sticking point then was the BWRs at Brunswick.  Having the Oconee "sister" in CR has probably softened that, along with a totally different management mindset.

As a side, it would supprise me if they are not already in discussion to buy SCE&G, "I know - I date myself, but it will always be SCE&G to me", the origional management team at VCS were ONS or Duke Corporate.

[HydroDave63]

The new utility industry M&A strategy...

[OldHP]

The new utility industry M&A strategy...

http://img157.imageshack.us/img157/204/pelicaneatingpigeonnd2.jpg[/img]

Has been for some time! 

[spentfuel]

Agreed!  I spent many years with Duke and the "end result" was the bottom line.

Duke looked at taking over the then "CP&L" several years back, the sticking point then was the BWRs at Brunswick.  Having the Oconee "sister" in CR has probably softened that, along with a totally different management mindset.

As a side, it would supprise me if they are not already in discussion to buy SCE&G, "I know - I date myself, but it will always be SCE&G to me", the origional management team at VCS were ONS or Duke Corporate.

Jeez you are old ain't ya  As for the BWR issue ONS (less the drywell) half fits the bill.

And as far as Excellon buying Duke that cant happen its again the law.  The NRC has rules that say foreigners cant own US nuke plants and them Dang Yankee's is sure foreign round the here parts 

sf