Duke Energy ash spill needs outside investigator, state treasurer says

Apr 30 - McClatchy-Tribune Regional News - Bruce Henderson The Charlotte Observer

 

State treasurer Janet Cowell's office will vote Thursday to oust one Duke Energy director and has urged Duke's board to name an outside investigator of the February coal ash spill into the Dan River.

Cowell, who oversees the pension plans for state and local government employees, was the latest of Duke's institutional investors to urge new blood on Duke's board.

The company will hold its annual shareholders meeting Thursday in uptown Charlotte.

"Although Duke Energy is being evaluated today by various federal and state government bodies, none of those organizations will be focused on ways to improve corporate governance or management practices," Cowell's office wrote Duke. "Independent internal investigations have unique aspects that can help teach companies how to better run their business."

The office said it will vote against the reelection of director Carlos Saladrigas, saying the regulatory and policy committee he serves on needs more expertise in environmental cleanup management.

Saladrigas is the only committee member up for reelection who had served for more than a few weeks before thespill.

The pension funds for California and New York City, have also urged shareholders to dump four Duke directors who serve on the committee. The funds together own 3.9 million Duke shares.

Duke has urged shareholders to reelect all the directors.

In a response to institutional investors last month, outgoing committee chairman Philip Sharp said Duke's directors are "actively engaged" in overseeing management's response to the spill.

"If, at any time, we believe the company's shareholders would be better served by the board or committee initiating an independent investigation, separate from the thorough reviews already underway by the company and various state and federal regulators, we will not hesitate to do so," Sharp wrote.

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