DoJ : Duke Energy To Pay $600K Fine For Prematurely Taking Control Of Osprey

(RTTNews) - The U.S. Department of Justice announced a settlement with Duke Energy Corp. (DUK) for violating the reporting and waiting period requirements of the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

The settlement requires Duke to pay $600,000 in civil penalties to resolve the department's charges that, after agreeing to purchase the Osprey Energy Center from Calpine Corporation, Duke took control of Osprey's business before filing required HSR Act notifications and waiting for the expiration of the mandatory waiting period for antitrust review.

The Justice Department's Antitrust Division today filed a civil antitrust lawsuit in the U.S. District Court for the District of Columbia, along with a proposed settlement that, if approved by the court, would resolve the lawsuit.

The complaint alleged that at the same time that Duke agreed to purchase Osprey, Duke entered into a so-called "tolling agreement" that immediately gave Duke control over Osprey's output and gave Duke the right to receive the day-to-day profits and losses from Osprey's business. As a result, from the moment the tolling agreement went into effect, Osprey ceased to be an independent competitor. This occurred before Duke made its required HSR Act notifications and before it had observed the required waiting period.