Duke Energy close to hiring former Progress exec as consultant

Former Progress Energy Chief Counsel John McArthur will advise Duke Energy on regulatory matters.

Duke Energy is close to finalizing a contract to hire former Progress Energy General Counsel John McArthur as a consultant.

Duke spokesman Dave Scanzoni says McArthur is expected to start work with Duke next month.

Duke must hire McArthur as a consultant for two years under the terms of a settlement agreement that closed the regulatory investigation into Duke?s $32 billion purchase of Progress Energy.

McArthur was slated to head Duke?s regulated utilities division after the merger. But he resigned in protest after Duke?s board of directors ousted former Progress Chief Executive Bill Johnson as Duke?s CEO within hours of the merger?s closing on July 2.

Regulators angry

Johnson?s ouster and the decision to replace him with Duke CEO Jim Rogers outraged the N.C. Utilities Commission. Johnson was supposed to be CEO of the merged company, under the terms of the merger agreement the companies signed in January 2011. The commission was given no warning that the Duke board had changed its mind. The commission began an investigation into whether Duke had intentionally misled regulators with assurances that Johnson would be CEO.

That investigation led to last month?s settlement, which outlined a number of steps Duke had to take for the commission to close its probe. Those included some of the executive changes that Duke announced Monday, and an agreement from Rogers that he would retire from Duke when his current contract expires Dec. 31, 2013.

?Good relationships?

The settlement also required that Duke ?retain the former general counsel of Progress (McArthur) to advise Duke for two years on regulator and legislative matters.? The provision says McArthur will ?advise and consult on a regular basis with Duke?s senior management ... on methods and procedures for maintaining good relationships with government officials in North Carolina.?

McArthur resigned from Duke along with Mark Mulhern, Progress? chief financial officer, who was slated to become Duke?s chief administrative officer, and Paula Sims, Progress? chief innovation officer, who was to carry that title to Duke. Duke had worked out severance agreements with the three when they left the company on July 10.

John Downey covers the energy industry and public companies for the Charlotte Business Journal.

Source: http://feedproxy.google.com/~r/vertical_1/~3/1amKiihkhhw/duke-energy-close-to-hiring-former.html

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