NEW YORK (Standard&Poor's) Dec. 19, 2003--Standard&Poor's Ratings Services said today that the settlement reached between Duke Energy Corp. (BBB+/Negative/A-2) and the FERC regarding the outstanding investigation relating to the Western electricity crisis in 2000 and 2001 is a positive event for credit quality. This is because the agreement reduces regulatory uncertainty and removes overhang related to trading and marketing malfeasance. The agreement, which requires Duke Energy to pay a $2.5 million fine, addresses allegations of Duke Energy's role in manipulative bidding practices, physical withholding of power, and of performing "wash" trades of natural gas. In a separate settlement, Duke Energy and the FERC staff reached an agreement (which still needs to be approved by the FERC)
