Sierra Club Opposes NCUC Decision to Make Duke Customers Shoulder Costs for Decades of Coal Ash Mismanagement

CHARLOTTE, N.C. — State regulators today increased the mandatory fixed charge from $11.80 to $14 for Duke Energy Carolinas’ customers and will force them to shoulder millions in costs for the utility’s statewide toxic coal ash cleanup.

The North Carolina Utilities Commission is allowing Duke Energy to add the mandatory fee to customers’ bills largely to pay hundreds of millions in costs caused by decades of the utility’s negligence in storing and disposing of the toxic waste that results from burning coal.

Commissioners assessed a $70 million dollar fine on Duke for that mismanagement, but still guaranteed the corporation full cost recovery for coal ash cleanup. They also agreed to let Duke get back approximately $342 million it spent on the Lee Nuclear Station, which Duke abandoned after the project's principal designer and contractor went bankrupt.

However, commissioners dealt the utility a blow by rejecting a request for large-scale grid improvements that called for hardening wires in hurricane-prone areas, voltage optimization, more storage, and a $25 million investment in electric vehicle infrastructure.

Sierra Club, the N.C. Sustainable Energy Association and the Environmental Defense Fund had entered into a settlement agreement with Duke on the utility’s “Power/Forward Carolinas” grid modernization plan, largely because the clean energy investments in the agreement would have removed barriers to clean energy, decreased greenhouse gas emissions, and saved customers money over the long term.

In response to today’s decision, Dave Rogers, representative for the Sierra Club’s Beyond Coal campaign in North Carolina, issued the following statement:

“This decision will create a real hardship for thousands families and businesses who will be forced to bail out Duke for its bad decisions. It’s unfair and unjust for Duke to shift the billions it’s going to cost to clean up its coal ash mess away from the company and its shareholders and onto the general public.

“We’ve already appealed Duke Energy Progress’ approved rate hike to the North Carolina Supreme Court, and we’re working on a plan to do the same for Duke Energy Carolinas customers.

“And while it's unfortunate that the Power/Forward settlement wasn't approved, we’re  glad that Duke is on the record recognizing that energy storage, charging stations for electrical vehicles and similar technology are a smart way to help improve reliability and save customers money.

“We look forward to working with all the stakeholders to determine the best way to move forward with a grid modernization plan that doesn’t rely on dirty, outdated fossil fuels like coal and fracked gas that poison our air and waterways, and instead harnesses clean, safe, renewable solar and wind, paired with robust energy efficiency.”