DUKE ENERGY: FERC APPROVES SETTLEMENT TO RESOLVE REFUND AND WESTERN ENERGY CRISIS ISSUES
The settlement, announced in July, resolves refund proceedings and other significant litigation related to the western energy markets during 2000-2001. The private litigation components of the settlement agreement are subject to court approval.
“We have made excellent progress in 2004 addressing and closing out regulatory and legal issues,” said Fred Fowler, Duke Energy president and chief operating officer. “FERC's approval of the Western Markets Settlement is a major milestone in resolving these issues. Duke Energy can now fully focus on its core business of meeting current and future energy needs in the western
As part of the settlement, Duke Energy will provide $207.5 million in cash and credits. In exchange, the parties will forego all claims relating to refunds or other monetary damages for sales of electricity during the settlement period, and claims alleging Duke Energy received unjust or unreasonable rates for the sale of electricity during the settlement period, January 2000 through June 2001.
Duke Energy recorded a $105 million pre-tax charge in the second quarter of 2004 to reflect the settlement agreement.
Specifically the settlement resolves:
Financial Effect of
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