Duke Energy Merges with Cinergy

[Raintree21]

Duke Energy merging with Cinergy

Duke Energy Corp. and Cincinnati-based Cinergy announced today they will merge, creating a mega-energy company that will boast 5.4 million retail customers, more than $70 billion in assets and about $27 billion in annual revenues.

The combined company, which will keep the Duke Energy name and Charlotte headquarters,, will have operations in two-thirds of the U.S., as well as in Canada and several other international locations, mostly in Latin America.

Paul Anderson, currently Duke's chairman and chief executive, will be chairman of the board of the merged company.

James Rogers, chairman, president and CEO of Cinergy, will be president and CEO.

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[tiblerbrit]

Thats huge! Now they have no excuse to keep that crappy brown building as their headquarters. I think they should build a shiny new building next to Wachovia's new one.

[Raintree21]

True, but as someone posted in the next big building postings, the feds would not look to happily on them raising electricity bills to finance a skyscraper.

[eastsider]

That should move them up to around #70 on the Fortune 500

[dubone]

True, but as someone posted in the next big building postings, the feds would not look to happily on them raising electricity bills to finance a skyscraper.

<{POST_SNAPBACK}>

unless they save money by doing it, like Wachovia is justifying its building costs.

Right now, i don't think they could justify it, as they have so much space in the old wach white and gold building. But if they can make a case for saving money through the merger by relocating or consolidating offices into a new building in charlotte, the feds, states and customers would all look fondly on it. (except any state that loses net employment from such a move).

[Sabaidee]

With the merger, the new CEO is only in charge of the business units of Duke Energy, and a new CEO position will be created to run the gas and pipeline units of Duke. Charlotte will the be headquarters for Duke Energy Holding, because the new Duke will consists of Cincinnati Gas & Electric Company and Union Light, Heat & Power, that will remain in Cincinnati, PSI Energy will stay in Plainfield, Indiana. Duke Power and the real estate arm of Duke Energy, Crescent Resources will continue to be headquartered in Charlotte. Duke Energy Gas Transmission (DEGT) and certain commercial operations will remain in Houston. Duke Energy Field Services (DEFS) will remain headquartered in Denver. Those two units will be run by a seperate CEO. Both answerable to the new board chaired by the current CEO of Duke from Charlotte. The new board will consist of 10 Duke Energy Board members and 5 Cinergy Board members.

[skysdalimit]

Yay, does this mean any more jobs for Charlotte?

[monsoon]

True, but as someone posted in the next big building postings, the feds would not look to happily on them raising electricity bills to finance a skyscraper.

<{POST_SNAPBACK}>

Not the feds. The NC Utilities Comission would not let them raise rates on their regulated customers simply to build a skyscraper. Power in Ohio is regulated too so I suspect the same would happen there. Duke is allowed to do whatever they want with their non-regulated businesses, but the power companies, including Duke, have not done well with these non-regulated ventures.

As a side note to this, most of you may not know that Duke does not serve the Northern 1/4 of Mecklenburg county.

[monsoon]

The news is reporting this could lead to 1500 job losses including in the Charlotte HQ, so I would guess this is not going to create a need for a new building in DT. Also the mayor of Cincinnatti has vowed to fight the merger.

[rockhilljames]

All your base belong to us.