Federal regulators have approved Duke Energy’s $2.8 billion cash sale of its commercial power plants in the Midwest to Houston-based Dynegy.
Approval from the Federal Energy Regulatory Commission is the last remaining step to closing the transaction, which is expected to happen April 2, Duke said in a statement released Friday afternoon.
The Charlotte-based energy company had announced the deal in August.
In January, FERC had asked for further analysis about the market power Dynegy would achieve in the deal, as it also plans to buy 10 plants for $3.5 billion from the private equity firm Energy Capital Partners. Regulators also wanted to know how Dynegy customers will be protected from rate hikes after the Duke deal.
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According to the two companies, the transaction includes ownership interests in 11 power plants in Ohio, Illinois and Pennsylvania, with a capacity of about 6,100 megawatts, as well as Duke Energy Retail Sales, the company’s retail business in Ohio.
Duke said in August that more than 500 of its commercial generation and corporate employees will interview for jobs with Dynegy, which will assume collective bargaining agreements for unionized workers.