Duke Energy recently said the Federal Energy Regulatory Commission has approved the sale of its nonregulated Midwest commercial generation business to Dynegy.
After the closing of the deal, Duke netted $2.8 billion, which it plans to use to improve its services to consumers and to facilitate the repurchasing of common shares. This will help the company generate capital for shareholders.
Duke said that approximately $1.5 billion will be used for repurchasing through an accelerated share-repurchase program. The remainder of the proceeds will be used to pay down holding-company debts and for 2015 capital investment purposes.
Dynegy acquired 11 power plants and Duke's retail sales department as a result of the transaction. The facilities are located in Ohio, Pennsylvania and Illinois and collectively can produce 6,100 megawatts of electricity.
“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,” Duke Energy Commercial Portfolio President Marc Manly said.
Duke said it is a leading force in the electric power holding market and reported approximately $121 billion in assets as of the end of 2014.
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