The proposed mega-merger of Progress Energy and Duke Energy has run into federal objections that, at a minimum, appear likely to delay the deal.
The Associated Press reported that the Federal Energy Regulatory Commission late Wednesday rejected the companies’ proposals to deal with concerns about how the merger would affect competition in the North Carolina and South Carolina markets.
The North Carolina-based utilities had planned to complete the merger by the end of the year, but an industry analyst told AP that the regulatory action likely will delay it by about three months.
The analyst also raised the possibility that the utilities could scrap the deal because of the government demands.
The regulatory issues have not focused on Progress Energy Florida, a Progress subsidiary that is the state’s second-largest electric utility.
