(RALEIGH) -- Officials with Duke Energy and Progress Energy are working on a response to federal regulators and have set July as a new deadline for completing the merger. Progress spokesman Mike Hughes said this extension was allowed for in the original merger agreement.

"This was stipulated in the merger agreement. The specific date even, July 8, 2012 was stipulated in the merger agreement. If there were pending regulatory approvals still at the time that we had passed a year," said Hughes.

The companies were originally hoping to finish the deal by the end of 2011 but are expected to have a plan ready very soon. "We will share with the North Carolina commission in the coming weeks and we would expect to file it with the federal commission thereafter and then they will have a period of time to review that."

Hughes added that the two companies a committed to getting the deal done, but the timeline is going to be driven by regulatory agencies.  Progress Energy CEO Bill Johnson has said that the merger could happen in March.