Duke Energy Settles Florida Power Plant Lawsuit

While admitting no wrongdoing or liability, Duke Energy reached an agreement with the U.S. government to resolve a lawsuit related to its acquisition of a Florida gas-fired power plant.

The plant in question—Osprey Energy Center (Figure 1)—is a 537-MW two-unit combined cycle facility located in Auburndale, Fla., that Duke Energy purchased from Calpine Construction Finance Co. for $166 million. The deal was announced in August 2014, but was not completed until January 3, 2017.

1. Osprey Energy Center. The facility began commercial operation in May 2004. It was the first combined cycle power plant in peninsular Florida to be built and owned by an independent power producer. Courtesy: Duke Energy

Although the Federal Energy Regulatory Commission, the Florida Public Service Commission, and the Federal Trade Commission (FTC) all approved the acquisition, the U.S. Justice Department filed a lawsuit against Duke Energy claiming the company should have sought FTC antitrust approval four months earlier than it did. The Justice Department’s case hinged on Duke Energy’s agreement with Calpine to buy power from the plant while awaiting federal approval of the acquisition.

Duke Energy continues to maintain that it pursued FTC approval at the correct time. The settlement is subject to approval by the U.S. District Court in Washington D.C.

“We’re pleased we’ve been able to successfully resolve this case,” said Harry Sideris, president of Duke Energy Florida.

—Aaron Larson, associate editor (@AaronL_Power, @POWERmagazine)