Highlands to review Duke Energy contract amendment tied to pending merger; decision deferred
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Summary
Town officials heard an explanation of a proposed amendment to Highlands’ wholesale power contract tied to a pending Duke Energy merger and agreed to review the 45-page amendment before taking final action at the next meeting.
Mayor Pat invited representatives from UTEC and Duke Energy to explain proposed changes to the town’s wholesale power contract after Duke filed for a merger. Louis Davis of UTEC and Richard Knight, a Duke representative, told the board the amendment contains a "reorganization amount" intended to keep Highlands financially whole through the contract years affected by the merger forecast.
Richard Knight said Duke has filed a Section 203 application with the Federal Energy Regulatory Commission and described the next procedural steps, including a planned Section 205 filing for the merger implementation package. "FERC is expected to rule next month on that," Knight said, describing the 203 filing as a threshold step in the process.
Town attorney Nick told the board he received the contract amendment only a few hours before the meeting and recommended the commission take time to review the 45-page document before a vote. "I would recommend... it's a 45 page contract amendment and so I think we need to look at it," Nick said, and suggested final action be deferred to the next meeting so the board and staff can examine the proposed language.
UTEC reported it had reviewed the amendment and did not identify major issues but described the amendment as including accounting and reorganization clarifications needed because two companies will combine balance sheets. The board did not take final action and agreed to consider the amendment at the next regular meeting after staff and counsel complete their review.
The town’s next steps are a staff and legal review of the amendment and a formal vote at the subsequent meeting; no contract changes became effective at this session.
