There are many issues being addressed in the Duke Energy rate case, which began last week. Some have been settled by intervening parties. One issue of particular importance that hasn’t been sorted out is how to pay for cleaning up the utility's coal ash dumps.
Last January, the Sierra Club, the Southern Environmental Law Center, and the N
.C. Department of Environmental Quality came to an agreement requiring that Duke Energy excavate 80 million tons of coal ash across six sites in North Carolina and move it to dry, lined storage facilities on site. The question before the N.C. Utilities Commission now is who must pay the $8 billion cost over the next decade.
The Sierra Club believes that Duke Energy - not customers - should be on the hook for its share of the cleanup cost, and it should not be allowed to earn a profit on those costs. Along with the N.C. Attorney General and Public Staff of the Utilities Commission, we are challenging Duke Energy’s cost recovery plan for coal ash cleanup.
Why do we believe this is so important?
First, Duke Energy knew that its method of coal ash storage was risky and would pollute the groundwater. It didn't act in the public’s best interest to fix these dumps when it had the opportunity.
Second, Duke Energy has a history of Clean Water Act violations dating to 2015, when it pleaded guilty to nine misdemeanors in federal court for discharging pollutants into nearby waterways through its coal ash ponds.
Finally and most importantly, Duke Energy should not earn a profit to clean up the coal ash, which it will do if it is allowed to raise customers’ rates. As a monopoly, Duke Energy earns a return on equity, which is particularly egregious when that means profit for cleanup costs.
Fortunately, the situation doesn't look favorable for Duke Energy's plan.
In January, the N.C. Utilities Commission ruled that Dominion Energy, which provides electricity to a small geographic area in the northeastern corner of North Carolina, could not earn a return on its coal ash cleanup investments.
The Sierra Club has generated over 1,600 comments from members and supporters urging the N.C. Utilities Commission to make Duke Energy pay for its own coal ash cleanup. One of the most poignant comments we heard was from Heather Sanchez at the Duke Energy rate hearing in Graham: "If I went to any of your houses and dumped a bunch of trash and then sent you a bill, you would think that was ludicrous."
We agree. Duke is asking the N.C. Utilities Commission to approve higher rates on customers' monthly electric bills and to put their entire coal ash cleanup responsibility on the backs of ratepayers. Duke also wants to earn a profit on over $1 billion of coal ash expenses in this rate case.
Duke Energy needs to clean up its own mess at its own expense - and not profit from polluting and poisoning its customers.