CINCINNATI, August 2, 2005 (BUSINESS WIRE) — Cinergy Corp. and Duke Energy announced that they have filed a joint application and testimony with the Kentucky Public Service Commission seeking approval of their merger agreement.
Testimony in support of merger applications has also been filed with the Indiana Utility Regulatory Commission and the Public Utilities Commission of Ohio outlining the benefits of the merger and commitments that Cinergy is making to the three states it serves. Among the commitments included are:
* To maintain reliability and customer service for customers in Kentucky, Indiana, and Ohio
* To share net merger savings with customers through rate credits in all three states
* To continue proactive economic development programs and support for state and local economic development activities in all three states
* To continue involvement in local communities, through charitable giving and other contributions
* To provide the regulated utilities in all three states with insulation from activities of other affiliated companies and protection against cross-subsidization.
With today’s filing, merger applications have now been filed in all five states to be served by the combined company and with the Federal Energy Regulatory Commission.
In the Kentucky application, as well as in the Indiana and Ohio testimony, the companies said the merger will be seamless to customers of Cinergy’s Kentucky, Indiana and Ohio utilities, The Union Light, Heat and Power Company, PSI Energy, and The Cincinnati Gas & Electric Company. Further, the companies emphasized that the merger will enhance the Cinergy utilities’ ability to supply reliable gas and electric service to its customers at competitive rates. The combination of the two companies will result in cost savings and operational synergies that will be shared with retail customers in all three states.
“ULH&P’s, PSI’s and CG&E’s role in providing reliable energy service, community involvement and economic development will continue as it has in the past,” said Greg Ficke, president of ULH&P and CG&E.
“Also, our customers can count on the high quality of service they have come to expect, as both Cinergy and Duke rank highly in customer satisfaction surveys,” added Kay Pashos, president of PSI.
The merger will have no effect on the regulation of gas and electric distribution service by the Kentucky, Indiana, and Ohio utility commissions, which will continue to set retail rates. The increased scope and scale of the merged company will make it financially stronger and will permit best practices to be shared across the entire organization.
The companies anticipate a ruling from the Kentucky PSC within 120 days. The transaction is expected to close in mid-2006, after state and federal regulatory approvals are received.
ULH&P serves approximately 145,000 customers in six Northern Kentucky counties and is an affiliate of Cinergy Corp., which has a balanced, integrated portfolio consisting of two core businesses: regulated operations and commercial businesses. Cinergy’s regulated public utilities in Ohio, Indiana, and Kentucky serve 1.5 million electric customers and about 500,000 gas customers. In addition, its Indiana regulated company owns 7,000 megawatts of generation. Cinergy’s competitive commercial businesses have 6,300 megawatts of generating capacity with a profitable balance of stable existing customer portfolios, new customer origination, marketing and trading, and industrial-site cogeneration. Cinergy’s integrated businesses make it a Midwest leader in providing both low-cost generation and reliable electric and gas service.
About Duke Energy [ www.duke-energy.com ]
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 the Americas. Headquartered in Charlotte, N.C., Duke Energy is a Fortune 500 company traded on the New York Stock Exchange under the symbol DUK.