FERC last week issued an order approving a bid by Duke Energy Trading and Marketing to transfer certain wholesale power transactions and related books and records to Morgan Stanley Capital Group (MSCG).

The transactions that will be transferred consist of 241 separate power sale arrangements between Duke and different counterparties. Each of the transactions is an individual power sale transaction or transaction confirmation that was entered into between Duke and the applicable counterparty under either a master umbrella agreement or other master general terms and conditions arrangement. The master agreements themselves will not be transferred and will remain between Duke and the applicable counterparty.

Upon closing of the transfer of a power sale transaction to MSCG, the transaction will become an agreement between MSCG and the applicable counterparty under a master power sales agreement between MSCG and the counterparty.

Since the sale transactions are with different counterparties, the power sale deals may not all be transferred to MSCG at the same time. Instead, any particular transaction will not be transferred to MSCG unless and until the conditions to the transfer included in a Duke-MSCG purchase and sale agreement are met.

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