On December 11, 2020, the North Carolina Supreme Court ruled that Duke Energy and its shareholders will not have to bear the full brunt of the coal ash cleanup costs.[1] In January 2020, Duke reached a settlement with environmental groups that requires the utility to excavate a total of 124 million pounds of coal ash from Duke’s coal plant sites over the next 10 to 15 years.[2] Duke estimates the total cost of the cleanup to cost $8-9 billion. Duke has repeatedly said that absorbing these costs would likely weaken its balance sheet.[3] The CEO has also said the company would be unwilling to reach a settlement with environmentalists on whether the utility can profit from the cleanup.

The NC Supreme Court decision partially upholds the North Carolina Utilities Commission’s (NCUC), the government agency that regulates utilities in the state, initial ruling that coal ash costs should be included in the cost of service used to establish the utilities’ retail rates, essentially putting the cost on Duke’s ratepayers. The NCUC’s decision was challenged by the state’s attorney general who argued that Duke should bear the costs of the cleanup and filed a brief in the NC Supreme Court to appeal the decision. The court also ruled that the NCUC should reconsider its rejection of North Carolina Public Staff’s “equitable sharing” proposal. The NC Public Staff’s, which helps consumers resolve disputes with utility companies, proposal would split the cost of cleanup between ratepayers and shareholders and extend the timeline for paying off the costs, but would not allow the utility to profit from the cleanup. The court's ruling does not mean the NCUC has to implement the NC Public Staff’s proposal, only that the commissions needs to consider "all potentially relevant facts."

[1] https://appellate.nccourts.org/opinions/?c=1&pdf=39826

[2] https://www.southernenvironment.org/news-and-press/news-feed/n.c-settlement-results-in-largest-coal-ash-cleanup-in-america

[3] https://www.utilitydive.com/news/uncertainty-over-earnings-return-for-8b-north-carolina-coal-ash-cleanup-we/583267/