CEO expresses confidence in the future of $32B deal to merge with Progress Energy
By Bruce Henderson
Duke Energy chief executive Jim Rogers traces the roots of a state investigation into the Duke-Progress Energy merger to differences in how regulators viewed the $32 billion deal.
In his first interview on the settlement that ended the probe in December, Rogers said the merger was worthwhile despite an 18-month approval process and forced management changes at Duke.
“The birthing process of the creation of the largest utility in the country has been quite difficult,” he said Wednesday. “I think the baby is going to be beautiful.”
The N.C. Utilities Commission reacted swiftly when Duke’s board elevated former Progress CEO Bill Johnson to lead the combined companies, as planned, then abruptly fired him.
At the heart of that reaction, Rogers said, was regulators’ perception that, with Johnson in charge, the smaller Progress would have been on equal footing in the combination with the larger Duke.
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Rogers said he personally negotiated the settlement terms with commission Chairman Edward Finley, after Duke’s board vetted them, and with the help of current Duke and former Progress director James Hyler. Both he and Finley wanted to resolve the issue, he said.
