Duke Energy sells non-regulated Midwest Commercial Generation Business

Duke Energy sells non-regulated Midwest Commercial Generation Business | Courtesy of wikipedia.org

According to a recent announcement, Duke Energy has finalized the sale of its non-regulating Midwest Commercial Generation Business to Dynegy Inc. for $2.8 billion in cash.

"This transaction allows Duke Energy to sharpen our focus to better meet our customers’ needs, while creating additional long-term value for our investors," Lynn Good, president, CEO and vice chairman of Duke Energy, said.

Duke Energy plans to use the cash funds to improve the company’s balance sheet and return capital to its shareholders; approximately $1.5 billion of the transaction will buy back the company’s common stock shares via an accelerated share repurchase (ASR) program. The remaining amount will go toward 2015 capital investments and paying off the company’s debt.

"Proceeds will be deployed in a disciplined manner, ensuring accretive returns for our shareholders and support for future growth initiatives," Steve Young, executive vice president and CFO of Duke Energy, said.

The sale is comprised of the ownership of 11 power plants, as well as the company’s competitive Duke Energy Retail Sales in Ohio.

“We are proud of the employees who have operated these plants for many years, and we appreciate the long and important role these operations have had for Duke Energy and our customers in the Midwest,” Marc Manly, president of Duke Energy’s commercial portfolio, said.