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Duke Energy has green light to sell assets for $2.8 billion

Staff writer |
Duke Energy said the Federal Energy Regulatory Commission has approved the sale of its non-regulated Midwest Commercial Generation Business to Dynegy for $2.8 billion.

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This approval for the cash transaction is the last remaining condition to closing the transaction. The transaction is expected to close on April 2, 2015.

This transaction includes ownership interests in 11 power plants in Ohio, Illinois and Pennsylvania, with a capacity of approximately 6,100 megawatts, and Duke Energy Retail Sales, the company's competitive retail business in Ohio.

Dynegy announced in August last year that it has signed two separate definitive sets of agreements to acquire the ownership interests in certain Midwest generation assets from Duke Energy and EquiPower Resources Corp and Brayton Point Holdings, LLC from ECP.

The Duke portfolio includes its retail business and ownership interests in the following plants: Killen, Stuart, Conesville, Miami Fort, Zimmer, Hanging Rock, Washington, Fayette, Lee and Dicks Creek.

The ECP assets include these generating facilities: Milford, Lake Road, Dighton, Masspower, Liberty, Elwood, Richland, Stryker, Kincaid and Brayton Point. Upon closing both transactions, Dynegy will own nearly 26,000 megawatts (MW) of generating capacity nationally and provide retail electricity to residents and businesses in Illinois, Ohio, Pennsylvania and Michigan..

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