DUKE ENERGY COMPLETES SALE OF SOUTHEAST MERCHANT PLANTS
Total proceeds of approximately $975 million from this transaction include cash proceeds of approximately $425 million, a note receivable of approximately $50 million and approximately $500 million in tax benefits.
Announced in May, the sale includes eight natural gas-fired power plants in the Southeast with a total capacity of 5,325 megawatts – Hot Spring (Arkansas); Murray and Sandersville (Georgia); Marshall (Kentucky); Hinds, Southaven, Enterprise and New Albany (Mississippi); and certain other power and gas contracts.
“The sale of the southeast merchant plants represents a major step in balancing our overall portfolio,” said Duke Energy Chairman of the Board and Chief Executive Officer Paul Anderson. “And with this transaction behind us, we have exceeded our 2004 divestiture target by several hundred million dollars, giving Duke Energy the financial flexibility to pursue potential investment opportunities for our strongest businesses.”
Already this year, Duke Energy has announced or closed asset sales that will provide the company with approximately $2.8 billion in proceeds including $650 million in tax benefits and $840 million in debt reductions.
Duke Energy is a diversified energy company with a portfolio of natural gas and electric businesses, both regulated and unregulated, and an affiliated real estate company. Duke Energy supplies, delivers and processes energy for customers in