Duke Energy's CEO Jim Rogers testified for hours before the N.C. Utilities Commission Tuesday afternoon, facing dozens of questions from commissioners concerned about the recent shake-up at the newly merged company.

Leading up to the hearing, more than a dozen consumers, Progress Energy employees, and shareholders wrote to the commission. Several urged the commission to rescind approval of the merger.

"Have we as a commission been misled -- or as described as others -- duped in this process?" Commissioner Susan Warren Rabon asked point-blank.

"I strongly believe this commission has not been misled," Rogers said.

All along, commissioners were told when Duke and Progress Energy merged, Progress CEO Bill Johnson would lead the new company, Duke Energy Corporation.

But almost immediately, the new board, dominated by Duke board members, voted Johnson out and Rogers in.
Rogers revealed the vote was 10-5, with the 10 Duke board members voting for the CEO switch, and the five Progress board members voting against it.

"It's just as simple as the board lost confidence in his ability to lead," Rogers said, based on his discussions with Duke board members.

He revealed that beginning on June 23rd, six days before commissioners gave their final approval on June 29th, he was advised of growing concerns from Duke board members.

He said board members told him they disagreed with Johnson's leadership style, specifically the way he would deal with Duke; that they were unhappy with Progress's financial performance; and that they were concerned with costs surrounding the company's Crystal River nuclear plant in Florida, which has been down for repairs since 2009.

"Did you have any discussions of what should be told to this commission and when?" one commissioner asked.

Rogers replied that legally, Johnson had to be CEO for the merger to go through and that the board couldn't vote on the change until after the merger closed.

He pledged that the company will uphold all other conditions of the merger, including keeping a significant presence of about 1,000 employees in Raleigh, where Progress was based. He said that consumers won't end up paying for Johnson's approximately$44-million-dollar exit package.

Critics said they will watch closely.

"We're going to be on the watch to make sure that (the) public doesn't end (up) bailing Bill Johnson or bailing out the Crystal River and the other problems that have been created," N.C. WARN's Executive Director Jim Warren said.

In response, Bill Johnson's attorney Wade Smith released the following statement: "Bill Johnson has a distinguished record of leadership at Progress Energy and was looking forward to the opportunity to lead the nation's largest utility. The fact that he is held in the highest regard by his peers in the utility industry and in the North Carolina business community speaks volumes about his leadership and business capabilities."

The commission has several options before it when it comes to responding. While many energy attorneys and economists who track public utilities said it is unlikely it will rescind the approval, they said the Commission could add new conditions to the merger or assess financial penalties.