Duke Energy plans to exit Midwest power generation business

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Duke Energy has initiated a strategic process to exit its Midwest commercial generation business, which includes ownership interests in 13 power plants.

The Midwest generation business includes 13 power plants with a total capacity of about 6,600 MW. These plants are owned or partially owned by Duke Energy Ohio and reported in the company's commercial businesses unit.

Eleven are located in Ohio, one is in Illinois and one in Pennsylvania. The plants are dispatched into the wholesale power market by PJM Interconnection.

Redeployment of any Midwest generation sale proceeds is expected to be accretive.

As a result of this announcement, the company will take an estimated pre-tax impairment charge of $1 to $2 billion in the first quarter of 2014. This impairment will be treated as a special item and excluded from Duke Energy's adjusted diluted earnings per share results.

Citigroup and Morgan Stanley will advise Duke Energy in the transaction.

The following is an alphabetical listing of the 13 power plants in Midwest generation.

·      Beckjord Station (coal), located in New Richmond, Ohio. Partially owned by Dayton Power & Light (DP&L) and American Electric Power (AEP).

·      Beckjord Station (oil), located in New Richmond, Ohio. Partially owned by DP&L and AEP.

·      Conesville Station (coal), located in Conesville, Ohio. Partially owned by DP&L and AEP.

·      Dicks Creek (natural gas), located in Middletown, Ohio. 100 percent owned by Duke.

·      Fayette Energy Facility (natural gas), located in Masontown, Pa. 100 percent owned by Duke.

·      Hanging Rock Energy Facility (natural gas), located in Ironton, Ohio, 100 percent owned by Duke.

·      Killen Station (coal), located in Wrightsville, Ohio. Partially owned by DP&L only.

·      Lee Energy Facility (natural gas), located in Dixon, Ill. 100 percent owned by Duke.

·      Miami Fort Station (coal), located in North Bend, Ohio. Partially owned by DP&L only.

·      Miami Fort Station (natural gas), located in North Bend, Ohio. 100 percent owned by Duke.

·      Stuart Station (coal), located in Aberdeen, Ohio. Partially owned by DP&L and AEP.

·      Washington Energy Facility (natural gas), located in Beverly, Ohio. 100 percent owned by Duke.

·      Zimmer Generating Station (coal), located in Moscow, Ohio. Partially owned by DP&L and AEP.

Duke Energy is the largest electric power holding company in the United States with more than $110 billion in total assets. Its regulated utility operations serve about 7.2 million electric customers located in six states in the Southeast and Midwest. Its commercial power and international business segments own and operate diverse power generation assets in North America and Latin America, including a growing portfolio of renewable energy assets in the United States.

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