Duke Energy Announces Sale Of Nonregulated Midwest Power Plants
Duke Energy announced it would sell its nonregulated Midwest Commercial Generation Business to Houston-based Dynegy for $2.8 billion in cash.
The sale, which closed in April 2015, included Duke Energy’s ownership interest in 11 power plants, plus the company’s competitive retail business in Ohio – Duke Energy Retail Sales.
“These power plants have been important to Duke Energy and our Midwest customers for many years, and I’m proud of the employees who have operated these plants well during challenging market conditions,” said Lynn Good, vice chairman, president and chief executive officer of Duke Energy.
Although these are valuable assets, they are no longer a good fit for Duke Energy. Being in a competitive market means that earnings from the plants can be volatile; the company’s investors prefer more predictable earnings.
The total generation capacity owned by Duke Energy in the 11 plants is about 5,900 MW. Nine of the plants are in Ohio; one is in Illinois and one is in Pennsylvania. The plants dispatch electricity into the PJM wholesale power market.
Duke Energy’s regulated utilities in Ohio, Kentucky and Indiana, including its regulated generation in Indiana and Kentucky, are not part of the sale.
