Duke, Progress Energy confident about upcoming merger

RALEIGH — After receiving a conditional stamp of approval from the feds, Duke and Progress Energy said they are feeling confident about their upcoming merger. 

On Friday, the Federal Energy Regulatory Commission tentatively approved the multi-billion dollar merger between the two companies.

It’s been in the words for about a year and a half and now the $26 billion merger is on its way to becoming official.

“We are intensifying our efforts towards integrating the companies and being prepared to deliver the significant benefits to our customers as soon as possible,” said Scott Sutton, a spokesperson for Progress Energy.

After previously being rejected twice by the FERC, Charlotte-based Duke Energy and Raleigh-based Progress Energy have reached a key milestone. They’re one step closer to combining their efforts and becoming the largest electric utility company in the country.

“Bigger is better in the sense that a bigger company can meet those challenges better. They have more finances to draw upon, they can diversify the customer base, and they have financial stability,” said Mike Walden, professor of economics at North Carolina State University.

Walden said the merger is a smart move for Duke and Progress Energy.

“It’s more geographically diverse. You need that for economic stability. You need capital to build power plants,” said Walden.

They now have less than two weeks to comply with about a dozen recommendations from the FERC, including a monitor to keep track of when and how the company buys and sells energy. They’re guidelines to ensure the two companies are ready to operate as a single unit.

“The larger you are, the easier you can access the markets for a better rate of return for your customers,” Sutton said.

State regulators now have to sign off on the deal before the merger is complete.

The merger will serve more than 7 million customers across the country. It’s expected to be official by July 1.

Information not available.