Comprehensive Settlement Agreement Requires Duke to Pay $50 Million in Coal Ash Basin Closure Costs

January 30th, 2023: Earlier this month, Duke Energy Progress and Intervenors agreed to a comprehensive settlement agreement resolving all issues in the Company’s South Carolina rate case.  Among its requests, the Company sought to recover $108 million dollars from ratepayers to cover the costs of removing toxic coal ash in contact with groundwater in its unlined coal ash basins in addition to closing the basins. The dangers coal ash poses to communities, wildlife and our waterways are clear, and Duke Energy continued to store toxic coal ash in unlined basins long after it knew the practice posed a public health hazard.  

Through extensive negotiations, Duke Energy agreed that the Company and its shareholders will pay $50 million of the costs it originally requested in the docket. Additionally, the Company agreed to forego recovery of all other coal ash basin closure costs incurred prior to 2018. This outcome represents significant financial relief to Duke Energy customers.

Sierra Club has previously engaged the Company on coal ash basin closure issues in both North Carolina and South Carolina, and in both of the Company’s service territories. In each instance, Sierra Club maintained that federal regulations require that coal ash should not be left in contact with groundwater and that Duke Energy customers should not bear the full costs of the closure and remediation of its coal ash sites.

Sierra Club was represented by Environmental Law Program attorneys Dori Jaffe and Justin Somelofske, with support from Bridget Lee, Bri Ziegenhagen, and Kaya Mark, alongside local counsel Bob Guild. Credit also goes to South Carolina Chapter Coordinator Audrey Jones; Southeast Organizing Manager Penny Cothran; BCC Representative Mikaela Curry; BCC Southeast Regional Director David Rogers; and Melissa Williams in Communications.