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Address of Principal Executive Offices, and Telephone Number
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
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Registrant, State of Incorporation or Organization, Address of Principal Executive Offices, and Telephone Number |
IRS Employer Identification No. |
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
| Title of each class | Trading Symbol(s) |
Name of each exchange on which registered |
| , each representing a 1/1,000th interest in a share of 5.75% Series A Cumulative Redeemable Perpetual Preferred Stock, par value $0.001 per share |
¨ Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 1.01 Entry Into a Material Definitive Agreement.
On April 1, 2019, the North Carolina Department of Environmental Quality (“DEQ”) issued a closure determination requiring Duke Energy Carolinas, LLC (“DEC”) and Duke Energy Progress, LLC (“DEP”) to excavate all remaining coal ash basins in North Carolina, which comprises nine ash basins at six sites across North Carolina. At that time, Duke Energy Corporation estimated the incremental undiscounted cost to close the nine remaining basins by excavation would be approximately $4 billion to $5 billion, potentially increasing the total estimated costs to permanently close all ash basins in North Carolina and South Carolina to $9.5 to $10.5 billion.
On December 31, 2019, DEC, DEP, DEQ, and certain other parties represented by the Southern Environmental Law Center (“SELC”) entered into a Settlement Agreement (the “Settlement”) whereby DEC and DEP agreed to excavate seven of the nine remaining coal ash basins in North Carolina, with ash moved to on-site lined landfills, including two at the Allen Steam Station, one at Belews Creek Steam Station, one at Mayo Plant, one at Roxboro Plant and two at the Rogers Energy Complex. At the two remaining basins at Marshall Steam Station and at the Roxboro Plant, uncapped basin ash will be excavated and moved to lined landfills. Those portions of the basins at the Marshall Steam Station and Roxboro Plant which were previously filled with ash and permitted facilities were built on top will not be disturbed and will be closed under other state regulations.
Also pursuant to the Settlement, the parties agreed to settle and dismiss all litigation, including the DEC and DEP appeal before the North Carolina Office of Administrative Hearings of the April 1, 2019 DEQ order, all state enforcement actions in the North Carolina Superior Court and all federal citizen suits pertaining to Clean Water Act violations filed in the United States District Court for the Middle District of North Carolina. The DEQ and those parties represented by the SELC also agreed that they would not challenge or otherwise object in court or before any other administrative body to the reasonableness, prudence, public interest, or legal requirement of the obligations imposed by the Settlement or any related consent decrees. The Settlement will be memorialized into a consent decree to be approved and entered by the North Carolina Superior Court.
The Settlement lowers the estimated total undiscounted cost to close the nine remaining basins by excavation by approximately $1.5 billion as compared to the estimate described above following the April 1, 2019 DEQ order. As a result, the estimated total cost to permanently close all ash basins in North Carolina and South Carolina is now approximately $8 to $9 billion, of which approximately $2.4 billion has been spent through 2019. The majority of the remaining spend is expected to occur over the next 15-20 years. DEC and DEP intend to seek recovery of all costs through the ratemaking process consistent with previous regulatory proceedings.
The foregoing description of the Settlement is qualified in its entirety by reference to the text of the agreement which is filed as Exhibit 10.1 hereto and incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| 10.1 | Settlement Agreement dated as of December 31, 2019 |
| 104 | Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document. |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| DUKE ENERGY CORPORATION | ||
| Date: January 2, 2020 | By: | /s/ David S. Maltz |
| David S. Maltz | ||
| Vice President, Legal and Assistant Corporate Secretary | ||
| DUKE ENERGY CAROLINAS, LLC | ||
| Date: January 2, 2020 | By: | /s/ David S. Maltz |
| David S. Maltz | ||
| Vice President, Legal and Assistant Corporate Secretary | ||
| DUKE ENERGY PROGRESS, LLC | ||
| Date: January 2, 2020 | By: | /s/ David S. Maltz |
| David S. Maltz | ||
| Vice President, Legal and Assistant Corporate Secretary | ||