As Expected, Rogers’ Head Served Up on Platter to NCUC

30 Nov

The following unedited email was sent by Duke Energy’s corporate communications staff to the company on November 29. Key points related to Progress Energy have been highlighted. 

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Today Duke Energy filed a settlement agreement with the North Carolina Utilities Commission (NCUC). The agreement between Duke Energy, the Staff of the NCUC and the North Carolina Public Staff resolves all issues related to the matters under review by the NCUC resulting from the leadership change that occurred after the close of the Duke Energy-Progress Energy merger in early July.

In addition, Jim Rogers announced his intent to retire as chairman, president and CEO of Duke Energy by the end of 2013, upon the expiration of his employment contract. See Jim Rogers’ message to all employees regarding this announcement.

The settlement agreement filed with the NCUC today contains a number of provisions that are listed below, including some personnel moves at the Senior Management Committee level. Other leadership changes will be announced after the NCUC reaches its decision on the settlement agreement, which could occur as early as Monday, Dec. 3.

“This settlement agreement is an important step forward for the company because it resolves one of our key near-term priorities, bringing closure to the NCUC merger review process,” said Rogers. “We are already delivering significant benefits from the merger for our customers and investors and are well-positioned for the future as a stronger, more efficient organization.”

Under the agreement, which is subject to approval by the NCUC, Duke Energy agrees to the following key provisions:

  • Providing additional merger commitments related to maintaining at least 1,000 employees in Raleigh, North Carolina, guaranteeing an additional $25 million in fuel and fuel-related cost savings to North Carolina ratepayers, and making $5 million in additional contributions to support workforce development and low-income assistance in North Carolina;
  • Making certain personnel changes including moving Lloyd Yates, currently Executive Vice President, Customer Operations, into the job of Executive Vice President, Regulated Utilities and employing a new General Counsel;
  • Creating a special committee of the Board of Directors to oversee the recommendation of a successor to Jim Rogers upon his retirement and the search for two new Board members;
  • Agreeing to defer the filing of a general rate case by Duke Energy Carolinas, LLC in North Carolina until February 2013, with the understanding that it will be allowed to defer the depreciation and operation costs of new generation incurred from the commercial operation of new generation until the effective date of new base rates; and
  • Retaining John McArthur, the former General Counsel of Progress Energy, Inc., on a contract basis to advise the company for two years on regulatory and legislative matters in North Carolina.
  • Marc Manly and Keith Trent will assume new leadership roles to be announced following the NCUC’s approval of the settlement agreement.

The settlement agreement does not constitute and should not be construed as an admission or acknowledgement of any illegal or improper acts by Duke Energy.

A full copy of the settlement agreement is available on the NCUC website, under Docket E-7, Sub 1017.

The North Carolina Attorney General’s Office, which has been conducting its own investigation independent of the NCUC’s review, is not party to this settlement agreement. The company will continue to cooperate with the Attorney General’s office and work toward a resolution.

Additional updates will be shared as developments unfold.

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Johnson Will Lead TVA

5 Nov

The following story is from the Raleigh News & Observer

Bill Johnson, the former chief of Progress Energy who was ousted as CEO of Duke Energy in July, will head the Tennessee Valley Authority, one of the nation’s largest energy companies with a footprint in western North Carolina.

It’s a dramatic turnaround for Johnson, 58, who was disgraced this summer by being fired by Duke almost immediately after the merger of Duke and Progress closed. He also was characterized by Duke officials in subsequent public hearings as autocratic and ill-suited to run the combined Duke/Progress, now the nation’s largest electric utility.

Johnson’s selection to head TVA was reported Sunday night by the Chattanooga Times Free Press, citing several unnamed sources. TVA, a federally owned corporation with 9 million customers in parts of seven states, is scheduled announce a new CEO Monday morning at its corporate headquarters in Knoxville.

Johnson’s legacy in North Carolina is that of an energy career spectacularly derailed upon the completion of the $32 billion merger between Charlotte-based Duke and Raleigh-based Progress.

Johnson is a former corporate lawyer who cleared every career hurdle to the CEO suite at Progress since starting his career in the company’s legal department in 1992, when the utility was called Carolina Power & Light.

Johnson had been CEO at Progress for five years and preparing for his next promotion – taking the helm at Duke. But in the months leading up to the merger’s closing date, Duke’s board members decided to reinstate Jim Rogers as chief executive, stunning Johnson by firing him just hours after the merger was completed.

In public testimony before the N.C. Utilities Commission, Johnson said Duke blamed him for pursuing a merger that was becoming increasingly costly for Duke.

Johnson left Duke with a golden parachute worth up to $44.7 million.

He is a one-time Penn State football lineman whose life off-the-clock favors listening to the Grateful Dead, reggae, gardening, reading, meditating, cooking and baking bread. When encountering Progress employees and others in hallways or on the streets of downtown Raleigh, Johnson often started off the conversation by asking what books the other person was reading.

He was regarded by employees as the antithesis of the starchy utility CEO, a laid-back, easy-going regular guy who drove a Toyota and lived in the same suburban home without falling prey to the temptation to upgrade to a gilded executive lifestyle.

But his professional ascent was not without some concessions. Not long after arriving at the Raleigh utility, the 6-foot, 4-inch tall Johnson was taken aside by his superiors and advised that his corporate career would advance faster if he shaved his beard. Johnson dutifully, if begrudgingly, took to the razor.

Johnson’s firing has triggered dual investigations by the N.C. Utilities Commission and the N.C. Attorney General to determine if Duke deliberately misled shareholders and regulators about its CEO succession planning. Both probes are ongoing.

Business to government

Johnson’s switch to TVA will recast the executive from the leader of a Fortune 500 corporation to running a sprawling government enterprise, but one that is nonetheless focused on generating electricity. TVA, created be the federal government during the Great Depression, also provides flood control and land management for the Tennessee River system and collaborates with other utilities and state and local governments on economic development.

TVA, the nation’s biggest government utility, conducted its CEO search through the McAuley Firm, a Charlotte-based executive search firm.

TVA’s outgoing CEO, Tom Kilgore, is a former CEO of Progress Ventures, a onetime subsidiary of Progress Energy, where he oversaw a portfolio of energy-related businesses in coal mining, barge transportation, independent power generation, energy trading and natural gas exploration. Kilgore joined TVA in 2005, was named TVA’s chief executive in 2006 and announced his retirement in August.

 

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Thank you for This Site

16 Aug

I have subscribed to the blog and have enjoyed reading the stories that show the true man that Bill Johnson was at Progress Energy and still is!  Thank you for your help in showing the world the true Bill Johnson.

- Anonymous Progress Energy Employee

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Autocratic…REALLY?

14 Aug

Autocratic…REALLY???  If you think or thought that of him then you really didn’t know him.

As I read through all the comments/stories on this blog I have to come to realize that I wasn’t the only one who felt special when they interacted with Bill.  Siggghhhh…here I thought I was the only one!!!  Seriously, this just goes to the heart of who Bill was/is!!!

As an employee who is not in management, I always felt as important as one when I would meet with Bill.  Whenever I was in his company I never felt that I was in the company of a CEO or Chairman, it was just Bill!!! I met Bill years ago when he worked in our legal department with one of my closest friends. I also got to work with him on the Service Company Diversity Council.  As he climbed through the ranks of the company, his interactions with me were always the same.  He was/is the same Bill I met years ago. He was always willing to make time for me no matter how busy he was.  What other CEO do you know, that would take the time to have lunch with an employee that wasn’t an executive?  He would always take the time to see me if I requested a moment of his time.  If you knew him, you know that he treasures family and friends more than anything else.  Whenever I would see he would give me a hug and then ask me “How are the boys doing”?  Then follow that with something that he knew personally about them.  He always prided in knowing something about his employees and their families.

My Bill story: Bill I hope you don’t mind me sharing my story.

A couple of years ago (Spring of Junior year in High School), my older son decided that West Point was his first choice of school where he would like to attend.  Well if any of you know, gaining admissions to West Point is not an easy process!!! It’s a very daunting process to say the least.  In addition to several qualifications/requirement (Academics, Leadership, Medical, Physical, Teacher recommendations, etc) you also need a Congressional or Senatorial nomination to gain admission.  My son was a very competitive candidate but, I being a single parent don’t believe in leaving anything to chance.  J  I reached out to two of our lobbyist, one that was currently employed (she is now deceased…sad day for us…Ashley we continue to miss you!!!) and another who had retired.  I knew they both had a great working relationship with my Congressman and Senator, so I wasn’t above asking for their help.

As I was going through the process (again I leave nothing to chance) I asked Ashley if she thought I should talk to Bill about writing a letter on my son’s behalf.  She asked “Do you feel comfortable enough to ask Bill?” and my immediate response was “YES”!!! She said go for it.  I sent Bill an email asking him for 5 minutes of his time to ask for a favor for my son.  When I met with Bill and told him my favor, he had only one question, “what was my son’s GPA?”, after my response he replied “ I would be glad to”. In addition, I mentioned to him that my son would be willing to meet with him in person, so that he would be more comfortable giving his endorsement of my son. Bill’s response to me was” its not necessary I know his mother”.  In that moment, I felt like the most valued employee in the company.  Here was my CEO saying he was comfortable giving his endorsement of my son whom he never met, just because he knew me.   He then proceeded to share with me that he almost became one of the members of the Long Grey Line (a West Pointer). Wow!!!  What a GREAT officer he would have made because he definitely is a GREAT CEO!!!  My oldest son is now going into his senior year (Firstie as they are known) at West Point majoring in Systems Engineering.  Thanks Bill for making this possible!!!  Bill…be on the lookout for your invite to his graduation.

I ask again, Bill …..Autocratic???  Well I personally will have to say NO!!!  Bill is more than a CEO to a lot of us and to me.   I know that I always have a FRIEND in Bill.   Wherever he lands they will be blessed to have him!!!  Our loss will be their gain!  Bill know that you are missed!!!

– Anonymous Progress Energy employee

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A Mentor

14 Aug

Twenty-plus years ago I met Bill Johnson – I was a teenager in an hourly job at the YMCA, and every weekend he would come in to work out and we would cross paths. Our conversations varied from sports, music, politics, business, cars and motorcycles, fitness, and family. Occasionally he would share a few words of wisdom – a recommendation of a good book, sage advice, and directional thoughts to consider – always solicited and never pushed.

As I grew up he tutored me on high school law classes, wrote college recommendation letters, provided perspective on graduate school, and later career advice. When I would return to Raleigh Bill would make time available for lunch or breakfast.

While my father and other family members were / are great role models, Bill being only 20 years older provided a refreshingly younger perspective to life. He was approachable, engaging and had the uncanny ability to see life in a very clear undistracted manner. He often spoke about the importance of kindness and thoughtfulness towards others.

Many other postings recalled how they had been impacted through some unanticipated display of kindness, consideration or thoughtfulness, and appreciated his unique ability to connect with every person regardless of their circumstances, role or level. In reading through so many of the postings above it was impressive to read how he impacted so many others, connected with so many others, and invested in the lives of so many others.

Bill’s leadership, integrity, and genuine interest in others have been refreshing to watch, and read about. His departing words at the Utilities Commission were touching. Bill thanks for being a good role model for me and so many others, we look forward to hearing what is next for you.

- Anonymous friend

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He Wanted People To Talk Freely

10 Aug
I had the great fortune of giving Bill tours of the Robinson Plant several times while I was there.  I wasn’t a manager, but he actually requested that I take him on the tour rather than “the management”  because he wanted people to talk to him freely, without the threat of a manager standing there.
That’s just Bill, he wanted to hear the truth, not what someone thought he wanted to hear, and he knew with managers, (read, the VP) standing there, they would not give him honest feedback. He was very aware that his being the CEO could be very intimidating to people, and that upper management often kissed up to him. He wanted no part of that.
One of Bill’s greatest personal relationship skills is that he makes it a point to remember something about everyone he meets. He might not remember someone by name, but he remembers them. He always called me “Boudreaux” when he visited Robinson, because he knew I am Cajun. Maybe he didn’t remember my name, but he remembered that. Actually, he knew my name, but he called me Boudreaux anyway.
He also taught while he was on those tours, by asking very pointed questions. Yes, he wanted the answers to those questions, but he also made points by asking them. Sometimes they were tough questions, but you never felt threatened, or harassed by the asking. You knew he wanted the truth at the heart of the matter, and you’d better not BS him.
I’m grateful for having the opportunity to work with Bill, and hope nothing but the best for him.
Hey Bill, if you’re reading this, do you still have that old Norton?  Want to sell it?
- Anonymous former PE employee

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Great And Good Describe The Man

9 Aug

Back near the end of the Shearon Harris Construction project, a small group of us were working in an office trailer on site developing responses to the NCUC auditors who were investigating the plant construction costs.

A young associate from a large law firm showed up one day: Bill Johnson.  Bill was not at all like the parade of consultants, auditors, and the like that we had seen come through the project over the years.  He did not start out telling us what he knew and all the great things he was going to do for us. Rather he quietly gathered some facts, asked a lot of questions, and studied the volumes of materials we had assembled.

The day came about a week later when I submitted a report I had been working on and my boss suggested that I “run that by Bill.”  Bill Johnson read my paper, made a few suggestions, marked a few corrections, and gained my respect in a matter of minutes.  Over the next two decades, I watched as Bill Johnson’s skill, character, and work ethic propelled him to the top of Progress Energy.

There is not much I can add to what others have said about Bill in these pages.   All I can say is that I know more than a couple of the people who have written words of tribute here and those individuals are persons of the highest caliber and every word written  carries great  weight. There is not a hollow word, compliment, or sentiment in anything that I have read.

Winston Churchill said “Great and good are seldom the same man.”  In the case of William Dean Johnson, great and good describe the man.

Tom Bell, CP&L/PGN Retiree

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