Not surprisingly, Duke denies the alleged violations and maintains it complied fully with federal law.
It says it is only agreeing to settle the case to avoid the costs and uncertainties of continued litigation.
Duke estimates the costs of continued litigation would exceed the costs of the settlement agreement.
Under Duke’s agreement with the government, the company agrees to close, by December 31 2024, two units at its two units at its five-unit 1140 megawatt Allen power plant in Belmont, NC – the two still operating units that remain part of the litigation.
Duke will also comply with lower emissions limits at those two units prior to closure.
In addition Duke will close, by December 31 2024, a third unit at the Allen plant that is not part of the case.
The 2024 closure date for the three units – which opened between 1957 and 1959 – would be 42 months earlier than the June 30 2028 closure date Duke had forecast in its latest “integrated resource plan”
The Allen plants total electricity would decrease by about 50% – 585MW – after the three unit’s closure.
The plants two remaining units, with a combined output of 555MW will continue operating.
According to Duke there will be no layoffs or impacts on the Allen plant’s 110-strong workforce due to the agreement.
Also under the agreement Duke will spend $US4.4 million on environmental projects and donations.
Of that:
- up to $600,000 for clean energy and energy efficiency projects in economically distressed counties in North Carolina and South Carolina
- at least $500,000 to replace wood-burning stoves withy lower-emission residential heating appliances in North Carolina mountain counties and large cities
- $175,000 donated to the US Forest Service
- $175,000 donated to the National Park Service
- All remaining funds to undertake one of both of the following North Carolina projects by 2020: the installation of multiple electric vehicle charging stations; and/or the installation of electrical infrastructure at highway rest areas and truck stops to power parked trucks’ cabs and cargo areas to allow drivers to turn off engines and eliminate emissions.
The agreement is subject to court approval.
