Jim Rogers, Duke Energy president, said he will go before Floridas energy regulators to discuss how the North Carolina-based companys $18 billion merger with Progress Energy will impact customers in the Sunshine State.
During a conference call with analysts on Thursday to discuss the companys second-quarter results, Rogers said he will address the Florida Public Service Commission, at their request, on Aug. 13.
I look forward to reaffirming our commitment to our customers in Florida, Rogers said.
Duke, which now has 7.1 million residential and business customers in six states, covers most of northern Florida.
The report, the first for Duke Energy since announcing the merger on July 2, showed the Charlotte-based energy giant grew its net income 2 percent, earning $444 million on top of $3.58 billion in revenue, due to higher electric rates.
In the second quarter a year earlier, the company earned $435 million as revenue topped $3.53 billion.
Meanwhile, the net income for Progress dropped 64 percent during the quarter. The company claimed the drop was due to three nuclear reactors in the Carolinas being shut down for refueling.
Also, the merger is taking a toll financially as the company looks at the future of the Crystal River nuclear plant and defends itself from an investigation that grew out of the merger, and among the companys work force.
The merger has also spawned an investigation by North Carolinas utilities regulators as the Duke board replaced Progress CEO BillJohnson hours after the deal was closed. The move preceded other Progress executives and board members being shown the door.
Rogers declined to discuss a potential settlement in the case, only saying Duke is seeking to "put this behind us and move forward."
Lynn Good, executive vice president and chief financial officer, said the company disagreed with the decision last week by credit rating agency Standard & Poors to lower Duke Energys ratings over a lack of transperancy in Johnsons removal and its risk practices.
We remain committed to maintaining a high credit quality, Good said.
The size, scale and higher regulated business mix of the combined company gives us a solid basis on which to build.
Repairs for Progress Energys Crystal River nuclear plant could require between $900,000 and $1.3 billion.
The company is required to make a decision by the end of 2014 on proceeding with repair costs, which are expected to grow over time, or to retire the broken unit.
Rogers said the company isnt prepared at this time to set a date by which a decision will be made.
Meanwhile, consolidating departments in the two companies are requiring 1,100 positions to be shed.
Rogers said employees in departments such as information technologies have already been advised of the downsizing over the next 15 months, with about half of the employees expected to be out of work by the end of the year through a voluntary severance program.
No number was available on how many of the jobs would be impacted in Florida.
Reach Jim Turner at jturner@sunshinestatenews.com or at (772) 215-9889.
