DUKE ENERGY AGREES MERGER WITH CINERGY = $36 BILLION ENERGY COMPANY

Paul Anderson of Duke Energy (NYSE DUK) Based in Charlotte, North Carolina, has made a move in what promises to be a start of a re-shaping of the US energy / resources industry. The company has 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. The merger is a non cash all share deal with the offer of 1.56 Duke shares for Cinergy shares. ( a lip smackin' $9Bn deal in total)

Based in Cincinnati, Ohio, Cinergy (NYSE CIN)has a non nuclear generating portfolio consisting of two core businesses: regulated operations and commercial businesses. Cinergy's integrated businesses make it a Midwest leader in providing both low-cost generation and reliable service.
Here's a pic of the tieless head honchos shakin' han's on the deal

This merger will combine generating assets of 46Mw with 29,000 employees with 3.7 MN customers and joint sales of $29.5Bn and according to EPA figures for 2001 a total of 107,4 Metric Tons of Co2 which will put them in 4th place in the US behind American Electric Power Co Inc 225.88 MMT Southern Company Inc 149.60 MMT and Xcel Energy Inc. it promises also to start a shake up in the way energy and water resources are supplied.

Paul M. Anderson will chair the new company, he was previously with Ford, the Duke and left for Australia to work with BHP and Billiton. He re-joined Duke in 2003.
Outspoken and forward thinking he shocked energy suppliers in the US last week on the back of record Q1 earnings results, by calling for a direct carbon tax in the US. Coming just after these remarks, this merger will excite a great deal of interest.

The company has successful investments in Brazil, Guatemala and Peru and Mexico.

Duke have 3 nuclear plants in the Carolinas and generate 7K Mwatts. Few people realise the importance of water for cooling nuclear power plants, for example the McGuire Nuclear Station is located on North Carolina's largest man-made body of fresh water, Lake Norman (see pic). The lake was built by Duke Power in 1963 by damming the Catawba River with Cowans Ford Hydroelectric Station. The lake provides cooling water for both McGuire and the coal-burning Marshall Steam Station. Cinergy have no nuclear plants, but have 27 energy supply projects including Combined Heat & Power .

Last summer French nuclear plants on the Rhone had problems with cooling due to the hot summer and low river levels.