RALEIGH With public hearings set to begin next week on the historic merger between Duke Energy and Progress Energy, the number of critics has dwindled to a handful.
The two electric utilities, on the verge of forming the nation's largest power company, are now asking state officials to sideline what's left of the opposition. The companies want the N.C. Utilities Commission, which will decide on the merger, to disallow arguments that groups critical of the proposed merger are hoping to make next week in Raleigh.
The environmental groups and other nonprofits want to turn the merger hearings, set to begin Tuesday, into a referendum on the economy. They contend the two merging utilities have failed to propose a remedy for the economic damage the state will suffer after the companies eliminate hundreds of jobs.
Progress, for example, has said it would cut 700 to 1,000 jobs in Raleigh, eliminating up to half of its downtown workforce.
By state law, the benefits of the merger have to outweigh its costs and risks. The nonprofit groups argue the merger will prolong the state's economic misery.
"We've never done a merger in such deep and dire economic times," said Stephen Smith, director of the Southern Alliance for Clean Energy, one of the groups involved.
"When the economy is growing like gangbusters, the displacement of hundreds of jobs may be more tolerable. But in the current situation, when someone loses their job, the prospect of them getting picked back up quickly is less promising."
Charlotte-based Duke and Raleigh-based Progress say a merger is not a forum to present public officials with a list of grievances or demands.
The opponents' arguments - warning of economic harm and environmental consequences, or urging greater green-energy programs - are groundless or irrelevant in a merger hearing, the companies contend.
"The commission's review deals with ensuring customer benefits don't exceed costs," said Progress spokesman Mike Hughes. "The issue of job losses is an important one - a very important one - but it is outside the scope of this proceeding."
The N.C. Utilities Commission, , which acts like an independent court, is free to approve the merger with any conditions it deems necessary, or reject the merger as a bad deal for the state.
To help make its case, Progress recently hired Raleigh attorney Jo Anne Sanford, who chaired the N.C. Utilities Commission until she stepped down in December 2006.
The opponents are proposing solutions such as greater development of green-energy programs and energy-efficiency programs to offset the outsize influence a giant corporation could have on the state's energy policy.
The N.C. Waste Awareness and Reduction Network in Durham wants the combined Duke Energy to contribute $270 million to low-income weatherization programs.
If the N.C. Utilities Commission agrees to quash such arguments, there will be little left to debate.
The utilities have made a series of promises to keep other potential opponents from fighting the merger. Early on, they signed a deal with rural electric cooperatives and also with municipal power agencies.
Most recently, the utilities signed a deal with the Public Staff, the state's consumer advocate. That agreement guarantees that $650 million in savings will flow through to customers over five years.
"I don't think there were a lot of people left standing," said Smith of the Southern Alliance, which is based in Asheville.
Gisele Rankin, a senior attorney with the Public Staff, said getting the utilities to commit to the $650 million promise was a major coup. The Public Staff deal also requires the utilities to contribute $15 million to low-income benefit programs.
In exchange, the Public Staff has agreed to support the merger. As a result, the consumer advocate will stay out of the proposals made by the other organizations.
"If we breach it they (Progress) could get out of everything they agreed to give up," Rankin said.












