Duke Energy Announces Asset Swap with Cinergy
Duke Energy North America (DENA, Houston, TX) and Cinergy Capital and Trading Inc. announced that they signed an agreement providing for the dissolution of VMC Generating Company. VMC is a general partnership in which affiliates of DENA and Cinergy each own a 50-percent interest. VMC was formed in September 1999, and owns 100 percent of Duke Energy Vermillion LLC, Duke Energy Madison LLC, and CinCap VII LLC.
Pursuant to the dissolution agreement, VMC's 100-percent interest in Duke Energy Vermillion and an undisclosed amount of cash will be transferred to an affiliate of DENA. VMC's 100-percent interest in Duke Energy Madison and CinCap will be transferred to an affiliate of Cinergy. The dissolution is subject to obtaining all necessary regulatory approvals.
“Asset swaps are a fundamental part of Duke Energy's portfolio management approach,” said Jim Donnell, DENA president and CEO. “The swap of our 50-percent interests in Madison and Cadiz for 100 percent in Vermillion is a trade that gives Duke Energy operational control of a strategically located asset.”