Duke Energy to sell its power plants in the Midwest
Originally published February 19, 2014
Duke Energy plans to sell its ownership interests in 13 power plants in the Midwest and get out of the power generation business there. "Our merchant power plants have delivered volatile returns in the challenging competitive market in the Midwest," said Duke Energy President and CEO Lynn Good. "This earnings profile is not a strategic fit for Duke Energy and we have begun a process to exit the business." The company said it will take an estimated pre-tax impairment charge of $1 to $2 billion in the first quarter of 2014.
Duke Energy Ohio wholly or partially owns 13 coal, natural gas, and oil-fueled power plants with a total capacity of approximately 6,600 megawatts. Eleven are located in Ohio, one is in Illinois and one in Pennsylvania. The plants are dispatched into the wholesale power market by PJM.
"These power plants are competitive in the market, equipped with significant environmental controls, and efficiently staffed by a great team of approximately 600 employees and contractors," said Marc Manly, president of Duke Energy's Commercial Businesses. "We will continue to focus on safely operating and managing these plants during this process, which we expect will take up to 12 to 18 months."
Duke Energy is the largest electric power holding company in the United States with more than $110 billion in total assets. Its regulated utility operations serve approximately 7.2 million electric customers located in six states in the Southeast and Midwest.
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