Duke Energy Settles Federal Air Case for $5.4 Million

Duke Energy will spend about $5.4 million to resolve longstanding federal air-pollution violations at five North Carolina power plants.

The Environmental Protection Agency and Justice Department announced the settlement Thursday of a federal lawsuit filed against Duke in 2000. A trial had been set to begin next month.

The EPA said Duke illegally modified the power plants, increasing their emissions, without also upgrading air-pollution controls. The U.S. Supreme Court agreed with the agency’s interpretation of the rules in 2007.

“This settlement brings five more power plants into compliance under EPA’s national initiative to cut pollution from the country’s largest sources,” said Cynthia Giles, assistant administrator for enforcement. “After many years, we’ve secured a strong resolution, one that will help reduce asthma attacks and other serious illnesses for the people of North Carolina.”

Duke has long argued that the modifications were part of routine maintenance that did not require pollution-control improvements.

Duke said in a statement that it “denies the alleged violations, maintains it complied fully with federal law, and is agreeing to settle the case solely to avoid the costs and uncertainties of continued litigation.”

The costs of continuing to fight the federal lawsuit would have exceeded the terms of the settlement, Duke said.