Contact: Kathleen Sullivan, Senior Communications Manager (NC), 919-945-7106, ksullivan@selc.org
Chapel Hill, N.C.—Multiple groups, including the Southern Alliance for Clean Energy (SACE), reached a settlement with monopoly utility Duke Energy in its request to the North Carolina Utilities Commission to combine its Carolinas and Progress subsidiaries. If the agreement is approved by the commission, the proposed merger will improve energy affordability for North Carolina residents, help put downward pressure on energy bills, and provide more reliability.
The settlement requires Duke Energy to work with stakeholders on a process for gradually converging retail rates over the course of multiple rate cases to ensure a smooth transition for customers. As part of this comprehensive settlement, Duke also committed to:
- Achieve cost savings for customers that will outweigh the costs relating to its merger and develop a method for tracking benefits from the merger over the next 14 years.
- Work to develop a Clean Transition Tariff that will allow large customers to procure clean energy resources.
- Evaluate improved rate design options for fast-charging electric vehicle stations.
- Continue studying power sharing and the potential need for greater ties between the two Duke subsidiaries in the regular transmission planning process, which could help advance renewables and reliability.
“Reaching this settlement is an important step in the right direction towards making affordable and reliable energy available to families across the state,” said Nick Jimenez, senior attorney at the Southern Environmental Law Center. “Merging Duke Energy Progress and Carolinas will help bring costs down, providing much-needed relief to customers who are struggling to pay their high energy bills.”
The Southern Alliance for Clean Energy, North Carolina Housing Coalition, North Carolina Justice Center, and Vote Solar, represented by the Southern Environmental Law Center, were among parties that signed the agreement alongside North Carolina Public Staff.
The clean energy groups reactions to the settlement and Duke Energy Carolinas and Progress merger are below:
“This merger between Duke’s electric utilities in the Carolinas is one of many opportunities Commissioners will have this year to protect customers from rising bills,” said Maggie Shober, research director at Southern Alliance for Clean Energy. “We applaud the Commission’s close review of this settlement and approval if it verifies savings for customers.”
“For those struggling to afford their housing, high and unpredictable utility costs can be an incredible burden,” said Samuel Gunter, executive director of the North Carolina Housing Coalition. “The North Carolina Housing Coalition supports the proposed merger and is hopeful that the long-term cost and benefit tracking mechanisms will lead to real utility savings for households. The Coalition commits to continued advocacy to ensure that hope becomes a reality.”
“The North Carolina Justice Center supports the proposed merger settlement,” said Claire Williamson, senior energy policy advocate at North Carolina Justice Center. “We will be vigilant to ensure that the promised cost tracking results in actual savings for NC ratepayers and will continue to push Duke Energy, in light of its record profits, to make energy more affordable, particularly for those households that are already struggling to pay their current energy bills.”
“At a time when energy bills are rising, Duke’s merger has the potential to deliver meaningful savings to customers,” said Jake Duncan, southeast senior regulatory director at Vote Solar. “This settlement establishes long-term tracking of the merger’s costs and benefits and guarantees that ratepayers will see lower rates. We’re hopeful it will help families better afford their energy bills for years to come.”
Since 1985, the Southern Alliance for Clean Energy has worked to promote responsible and equitable energy choices to ensure clean, safe and healthy communities throughout the Southeast. Learn more at www.cleanenergy.org.
