Duke Energy Settles Lawsuit Involving Osprey Acquisition

By Editors of Power Engineering
Duke Energy has settled with the U.S. government to resolve a lawsuit alleging the utility committed a technical violation of federal antitrust law in its recent acquisition of the Osprey Energy Center.
The natural gas-fired Osprey plant in Auburndale, Fla. was acquired by Duke from Calpine Construction Finance Co. for $166 million in a deal completed on Jan. 3 of this year. Along with the Federal Trade Commission, the Federal Energy Regulatory Commission and the Florida Public Service Commission approved the deal.
At issue in the suit brought by the U.S. Justice Department was the date on which Duke sought FTC antitrust approval for its acquisition of Osprey—Jan. 30, 2015. The Justice Department holds that Duke should have sought FTC approval four months earlier when the utility signed a separate contract with the plant’s previous owner. Under this contract, Duke agreed to purchase electricity from Calpine during the period in which it awaited federal approval of the acquisition.
Duke maintains it sought FTC approval on the correct date and was in compliance with the relevant federal statue as it was widely interpreted by most companies at the time.
As part of the settlement, Duke admitted no wrongdoing or liability, but agreed to pay a $600,000 civil penalty to finalize the case and avoid costs associated with continued litigation.
The settlement is subject to approval by the U.S. District Court in Washington, D.C.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...

Shell Leverages Data to Transform from Reactive to Predictive Operations

This 6-page report describes how Shell engaged in a massive project with OSIsoft to transform the...

Selection, Use, Care and Maintenance of FR Clothing

For industries operating in an inherently dangerous environment, the importance of selecting the ...

Evolution or Revolution: IT / OT convergence means a world of possibilities

The oil and gas industry is experiencing a rapid paradigm shift in regards to digital transformat...