Duke Energy’s $1.9 billion takeover of Duke Energy Corp., which includes a controlling stake in Duke Energy, was approved on Friday by the Tennessee State Legislature, a move that could bring significant changes to Tennessee’s energy market.
The Tennessee General Assembly approved the deal in December.
The $1 billion in cash and stock that Duke has pledged to the Tennessee Valley Authority to be used for operating costs will help finance its expansion into the Tennessee Electric Power Authority, which oversees the state’s electric grid, which is largely dominated by Duke’s utility.
Duke Energy announced the deal earlier this year after acquiring a controlling interest in the utility.
The merger will provide a stable, large-scale energy supplier that will help Duke extend its portfolio and create jobs.
The company is also expected to acquire another energy supplier, and it has been reported that Duke Energy is considering adding a third energy supplier to the deal.
A Duke Energy spokesman declined to comment.
The state is expected to begin receiving the money as early as next month, with Duke Energy expected to receive an additional $1 million for the first four months of the deal, the Associated Press reported.
The deal is expected in conjunction with Duke’s $3.6 billion purchase of the Tennessee Power and Light Co., which is currently owned by Duke Energy.
Duke said in December that it planned to spend $1 trillion on renewable energy by 2030.
The takeover of the utility has already resulted in the closure of a number of Duke Power plants in the state.
It also has prompted calls for a moratorium on the sale of natural gas to the public.
“Duke Energy is the largest customer of the Tennessean’s utility,” Gov.
Bill Haslam (R) said in a statement at the time.
“Tennessee residents have been left to worry about their own energy bills and the price of their electricity and gas.
I will do all that I can to protect their energy security and keep their jobs.”
The company will now be able to tap into the TCEA’s surplus of gas that has been left over from the closing of its gas plants, as well as coal reserves.
The utility has been investing heavily in wind power and solar power, but has yet to build out the capacity needed to produce electricity on its own.