Duke Energy expects $100M settlement in coal ash spill

February 18, 2015 | By Jaclyn Brandt

Duke Energy announced it could reach a settlement with the U.S. government in the "next several days" in regard to the February 2, 2014 coal ash spill in the Dan River in North Carolina. Criminal charges are expected to be filed against the company for violations of the Clean Water Act.

Dan River. Credit: Marmaduke Percy/Wikimedia Commons

"The company expects a proposed agreement could be reached and filed in the next several days for consideration by the court," Duke Energy said in a statement. "If approved, the proposed agreement would resolve the ongoing grand jury investigation of the company's coal ash basin management."

The company addressed the charges in an earnings statement this week, explaining their fourth quarter earnings. The report disclosed the possible fine, explaining: "Reported results for the fourth quarter 2014 include a charge of approximately $100 million, or $0.14 per share, related to the company's assessment of probable financial exposure related to any agreement."

A grand jury looking into the 39,000-ton coal ash spill first convened nearly a year ago. According to the Charlotte Observer, the $100 million could be split between fines, community service and mitigation projects. If the deal becomes official, it is not clear whether the fine would take care of any civil actions pending from the spill, including possible charges from the Environmental Protection Agency and others.

Drew Elliot, spokesman for the North Carolina Department of Environment and Natural Resources (DENR), explained that any settlement won't stop the DENR's claim that Duke Energy violated state law with groundwater contamination in the case.

DENR released an official statement, which explained, in part: "The department would like to point out that this settlement would not resolve DENR's civil litigation over violations at coal ash ponds, which is ongoing. We also continue to investigate violations of state groundwater standards and to maintain our enforcement partnership with the U.S. Environmental Protection Agency for civil violations of the Clean Water Act. Finally, we note that any settlement would not relieve Duke Energy of any obligations under the state's Coal Ash Management Act."

In April 2014, Duke Energy responded to the North Carolina Joint Environmental Review Commission (ERC) about the incident, and accepted full responsibility, as well laying out their plans for their future commitment to the Carolinas.

However, despite the case, Duke Energy said it was happy with the year they had. Their earnings for 2014 were $1.88 billion.

"2014 was a year of great accomplishment and challenge," said President and CEO Lynn Good. "Our system reliably met record customer demands during the 2014 polar vortex. Our teams quickly and safely responded to over 1.7 million customer outages following two major ice storms early in the year."

But the DENR wants to make sure the settlement is not the end of the story. Elliott added, "This is not some sort of global settlement. This is far from over."

For more:
- read this report

http://www.fierceenergy.com/story/duke-energy-expects-100m-settlement-coal-ash-spill/2015-02-18