The Alberta Energy and Utilities Board (EUB) ordered Engage Energy Canada, a subsidiary of Duke Energy Corp. (A/Negative/A-1), to refund $40.3 million to the province's Transmission Administrator by Jan. 15, 2003. Engage had anticipated and reserved an amount representing the majority of the mandated refund. As a result, there will be minimal, if any, effect on earnings. However, the $40.3 million cash refund, much of which had been anticipated in the company's projections, is still a negative for credit quality; Duke Energy has been experiencing a string of negative events that contributed to Standard&Poor's revising its outlook to negative from stable on Dec. 13, 2002.
