In conjunction with last week’s announcement that it would sell power plants in the U.S. Southeast and exit some overseas businesses as part of a company-wide reorganization plan, Duke Energy said Monday that it is combining its North American and international merchant energy operations and eliminating some executive positions.

Under the shake up, Duke Energy North America (DENA) and Duke Energy International (DEI) will be brought together in one organization under the leadership of Bobby Evans, president, Duke Energy Americas. Evans, who was tapped to lead the company’s transition, lead the restructuring of the company’s merchant business, including the wind-down of the Duke Energy Trading and Marketing joint venture with ExxonMobil.

While Richard McGee will continue as the president of DEI and will report to Evans, the reorganization eliminates the role of DENA President Robert T. Ladd. Duke Energy said Ladd has elected to leave the company and will transition through the end of January.

“As previously announced, Duke Energy is reducing its presence in the merchant energy business,” said Fred Fowler, Duke Energy president and COO. “These businesses will more narrowly focus on key markets in North America and South America. We are aligning our management and organizational structure to reflect this change.”

Last week, Duke Energy CEO Paul Anderson outlined a major restructuring plan and said the company would have to take a $3.3 billion fourth quarter 2003 pretax charge as a result of asset impairments (see Daily GPI, Jan. 8). Duke Energy also announced that it intends to sell power generation plants mainly in the Southeast region of the United States, including plants in Georgia, Mississippi, Kentucky and Arkansas, despite likely receiving only a fraction of their original cost. Duke Energy will shelve unfinished merchant power plants in Moapa, NV; Deming, NM; and Grays Harbor, WA.

In addition to McGee, the following people will also report to Evans:

In addition to Evans, the following will continue to report to Fowler:

Duke Energy currently has a portfolio of natural gas and electric businesses, both regulated and unregulated, which supply, deliver and process energy for customers in North America and selected international markets.

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