Duke Energy announced today it would exit its commercial generation business in the Midwest. Duke is said to be seeking a single buyer for the 13 plants it owns in Ohio, Illinois and Pennsylvania. It is widely assumed that a recent rate hike denial by the Public Utilities Commission of Ohio, where 11 of Duke’s 13 Midwest plants are based, played a significant role in the company’s decision. Duke CEO Lynn Good said on numerous occasions the outcome of the rate case would influence its strategy in the region going forward.
“Our merchant power plants have delivered volatile returns in the challenging competitive market in the Midwest,” Good said in a statement. “This earnings profile is not a strategic fit for Duke Energy.”
Good stressed that its Duke Energy Ohio and Kentucky regulated utilities, which serve 1.3 million customers, are not part of the targeted sale.
