Court filing: $222.15 million to clean up coal ash in Rowan

Published 12:05 am Wednesday, August 24, 2016

By Josh Bergeron

josh.bergeron@salisburypost.com

SALISBURY — A court document filed Monday in a lawsuit between the Yadkin Riverkeeper and Duke Energy provides some insight about the cost of coal ash cleanup in Rowan County and across the state.

At the time the document was created in 2013, Duke estimated the cost to clean up at Buck Steam Station to be a maximum of $222.15 million. That cost would include excavating ash and moving it to a lined landfill. The document estimates identical cleanups at all of Duke’s sites in North Carolina to cost roughly $6 billion, much of it at Marshall Steam Station in Catawba County.

The 2013 cost is slightly higher than a $4 billion estimate from a securities filing earlier this year and lower than the $10 billion maximum cost that Duke has cited. The company says estimates have changed as elected officials alter laws.

In the Riverkeeper’s lawsuit, the Southern Environmental Law Center and Duke Energy are currently debating whether the full version of a toxicologist’s deposition should be released. Duke has also asked for a hearing to inquire how the Associated Press obtained a copy of the deposition. Monday’s court filing includes the 2013 cost estimates as part of an argument that Duke Energy has tried to prevent the release of important information.

“This is part of a continuing effort by Duke Energy to prevent the public from obtaining information about important issues of public concern,” the SELC says in its court filing.

The SELC claims Duke Energy is misleading the public about a cleanup cost that’s significantly lower than the $10 billion figure.

“Duke Energy had relied upon its extreme cost estimates to discourage excavation of coal ash from all its leaking pits,” the filing states.

SELC and Duke Energy appear to disagree on the correct costs contained in the 2013 document. The SELC uses a $2.5 billion figure — the net present value — as the true cost. That’s a quarter of the $10 billion figure cited by Duke.

Duke Energy says the SELC isn’t interpreting the document correctly.

“This is the latest extreme and outrageous stunt by the SELC,” said Duke Energy spokeswoman Paige Sheehan. “The group is misrepresenting information contained in a spreadsheet to cause confusion and to mislead the public.”

Sheehan reiterated a point made in a previous filing by Duke — that leaked documents impede the company’s ability to get a fair trial in the lawsuit.

She said the 2013 documents were based on accurate information at the time, but they may not be correct today. When asked about the Buck Steam Station price, Sheehan said it’s possible the cost of cleanup may be higher because of a compressed timeline.

At Buck, Duke’s 2013 estimates spread the cost of landfill construction out over 14 years — starting in 2014 and ending in 2027. Three years later, Duke Energy isn’t required to excavate Buck Steam Station’s coal ash ponds. Instead, the company can cap the ponds in place. Another difference from 2013 includes a new law that requires Duke to provide coal ash neighbors with a safe source of water.

Sheehan said there are too many variables to immediately provide updated cost estimates for Buck Steam Station individually.

Regardless of the exact number, it’s likely that Duke Energy will seek to add coal ash cleanup costs to the bills of customers. Duke Energy CEO Lynn Good has said coal ash cleanup is part of the cost of providing energy. On Tuesday, Sheehan confirmed that the company plans to ask state regulators to recoup coal ash cleanup costs by increasing the bills of customers.

Duke Energy has said “criticism of the state government therefore extends to Duke Energy,” according to court filings. Amid Duke Energy’s efforts to prevent the release of cost estimates and Rudo’s deposition, the SELC says the company considers itself and the state as the same entity.

The SELC also argues that Duke Energy is trying to distract the court from the initial point of the Yadkin Riverkeeper’s lawsuit — alleged Clean Water Act violations at Buck Steam Station.

Contact reporter Josh Bergeron at 704-797-4246.