The Public Staff is the independent state agency charged with protecting the interests of utility customers.
The stipulations will ensure that the proposed acquisition 'will have no adverse impact' on either Duke Energy or Piedmontcustomer bills or service, the Public Staff states in a filing to the North Carolina Utilities Commission (NCUC).
With the stipulations, the acquisition 'is justified…and meets the standard for approval' by the NCUC, the filing says.
Duke Energy Chairman, President and CEO Lynn Goodcalled the Public Staff's recommendation 'another positive step' toward completion of the acquisition, which will provide wide-ranging benefits for customers and communities throughout North Carolina.
'The combined company will build on Duke Energy's and Piedmont'sstrong tradition of customer service and community support, with an ongoing commitment to affordable energy, economic development and environmental stewardship,' Good said. 'We look forward to discussing the benefits of the acquisition at the NCUC hearing in July.'
Piedmontwill retain its name and operate as a business unit of Duke Energy.
Among the stipulations contained in the Public Staff's agreement with Duke Energy:
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Piedmont'sNorth Carolinacustomer bills collectively would decrease by $10 million, spread over the first two years after the acquisition, to ensure Piedmontcustomers benefit from Piedmont-related cost savings generated by the acquisition. In North Carolina, Piedmonthas about 655,000 residential customers, 69,000 commercial business customers and 1,000 industrial and other customers.
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The combined company would make annual charitable contributions totaling at least $17.5 millionin North Carolinaduring each of the four years after the acquisition.
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The combined company would commit $7.5 millionfor low-income household energy assistance and community job training programs during the first year after the acquisition.
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Certain expenses related to the acquisition, including severance costs and investment banker and legal fees for transaction structuring, would be excluded from customer bills.
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Duke Energy and Piedmontwould be subject to a 'Code of Conduct,' specific to the acquisition, ensuring, among other things, that their customers would continue to benefit from competitive natural gas prices.
The NCUC will hold a hearing on the proposed acquisition on July 18in Raleigh.
Duke Energy and Piedmontseek to complete the transaction, subject to NCUC approval, by the end of 2016.
The proposed acquisition, first announced in October 2015, has been approved by the Tennessee Regulatory Authority, contingent on NCUC approval.
Duke Energy and Piedmontalso have formally notified the Public Service Commission of South Carolinaabout the transaction. The two companies are providing updates to the South Carolinacommission about the NCUC's review.
In addition, the Federal Trade Commission has conducted an anti-trust review and approved the transaction.
Piedmont'sshareholders also have approved the acquisition.
About Duke Energy
Duke Energy is one of the largest electric power holding companies in the United States. Its regulated utility operations serve approximately 7.4 million electric customers located in six states in the Southeast and Midwest, representing a population of approximately 24 million people. Its Commercial Portfolio and International business segments own and operate diverse power generation assets in North Americaand Latin America, including a growing portfolio of renewable energy assets in the United States.
Headquartered in Charlotte, N.C., Duke Energy is an S&P 100 Stock Index company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available at duke-energy.com.
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