Duke-Progress merger facing competition worries

[December 15, 2011]  RALEIGH, N.C. (AP) -- The merger of Duke Energy and Progress Energy to form the country's largest electric company is not getting the approval needed by federal regulators.

The Federal Energy Regulatory Commission has scheduled a Thursday hearing on changes to the merger plans in Washington. Regulators surprised the utilities late Wednesday by rejecting plans to alter the deal to satisfy fears the combined company would have too much of a grip on wholesale power markets in the Carolinas.

The federal agency said in September the companies should change merger details and suggested steps such as selling power plants. The companies proposed a different option by offering excess energy to wholesale buyers in their Carolinas territories.

Regulators now say the proposal by Duke and Progress doesn't go far enough.

[Associated Press]

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