By Jim Kennerly, Policy and Regulatory Analyst

The NC Utilities Commission approved Duke Energy’s customer charges for its 2011 spending on 1) compliance with the Renewable Energy and Energy Efficiency Portfolio Standard (REPS) and 2) its fuel and fuel-related costs.

By Jim Kennerly, Policy and Regulatory Analyst

As the Duke-Progress merger progresses, one of NCSEA’s top priorities is to ensure that Duke Energy  and Progress Energy continue to offer successful, customer-focused programs encouraging renewable energy and energy efficiency. To enhance transparency and provide greater certainty, NCSEA and the City of Raleigh have proposed convening a working group comprised of the utilities, local government decision-makers, clean energy service providers and energy advocates in order to allow all parties to exchange ideas and stay informed of the combined company’s plans to continue offering affordable clean energy options.

Without more information about the future of successful utility initiatives such as Progress Energy’s SunSense program, it will be very challenging for many local governments such as the City of Raleigh to undertake cost-effective sustainability initiatives that reduce waste, encourage clean energy and improve quality of life. In a letter NCSEA filed at the North Carolina Utilities Commission on behalf of the City of Raleigh, Mayor Nancy McFarlane asserts that “greater visibility as to the companies’ plans for integration of these programs and practices will better enable the City of Raleigh to carry out its mission, to the benefit of our 416,000 citizens.”

To see NCSEA’s filing at the Commission and Mayor McFarlane’s letter to the North Carolina Utilities Commission, click here.

The North Carolina Utilities Commission has hired Anton R. Valukas and the law firm of Jenner & Block as outside counsel to assist in its investigation of the Duke Energy and Progress Energy merger. Valukas is a litigator and the Chairman of Jenner & Block, a national firm which has offices in Chicago, Washington D.C., New York and Los Angeles.

The Commission approved the merger on June 29, 2012. But the Commission has been investigating whether it was misled after news broke that Bill Johnson, the former head of Progress Energy, was removed from the top spot and replaced by James E. Rogers, the Duke chief executive.

Johnson, Rogers and two Duke directors — Ann Maynard Gray and Michael Browning — and two former Progress directors, E. Marie McKee and James Hyler Jr. — were asked to testify before the Commission in July. Following the hearings, the Commission said it would continue to look into the matter.

The North Carolina Sustainable Energy Association (NCSEA) intervened in the merger proceedings and requested that Duke Energy and Progress Energy be combined only on the condition that the utilities take certain mitigation measures. One of those measures was for the combined utility to offer on-bill financing as a way to make energy efficiency measures accessible and affordable to residential customers who may not be able secure a loan to pay for efficiency improvements.

Earlier this week, NCSEA entered into an agreement with Duke Energy and Progress Energy to try to design an on-bill financing program by year’s end that will work for the utilities, their customers and renewable energy and energy efficiency developers.

The North Carolina Sustainable Energy Association (NCSEA) has entered into an agreement with Duke Energy and Progress Energy to try to design an on-bill financing program that will work for the utilities, their customers and renewable energy and energy efficiency developers

Energy efficiency improvements and rooftop solar are often too costly for customers, even after taking utility incentives into account. Duke, Progress and NCSEA will explore the feasibility of an on-bill financing program that addresses the up-front cost hurdle. A successfully implemented program would promote a more resilient, secure and affordable energy future for all of North Carolina.

Duke, Progress and NCSEA hope the Public Staff, the South Carolina Regulatory, NC Attorney General, NAACP, AARP, the NC Justice Center, Environmental Defense Fund and the NC Farm Bureau will be direct participants the discussion.

Duke Energy and Progress Energy have agreed to disclose additional information about their ongoing efforts to comply with the swine/poultry waste-to-energy obligations included in the Renewable Energy & Energy Efficiency Portfolio Standard (REPS) law. The utilities filed a settlement agreement on Tuesday, July 31 with the North Carolina Utilities Commission.

Earlier this summer, North Carolina’s electric suppliers — Duke, Progress, Dominion and the municipal and cooperative power companies — indicated to the Commission that they would not be able to comply with their 2012 and 2013 swine and poultry waste-to-energy REPS requirements.

Duke Energy has withdrawn a proposal to spend about $13 million in shareholder money on a one-year pilot program that would have given a 6-percent rate cut to large commercial and manufacturing customers in North Carolina.

The company on Tuesday, July 19 filed with the North Carolina Utilities Commission to withdraw the pilot project. In the filing, Duke said it would continue to evaluate the Economic Recovery Rider "along with other ways to help customers manage their energy costs."

The Charlotte Business Journal has more about the pilot program here.

In its annual fuel charge adjustment proceeding, Duke Energy is seeking approval from the NC Utilities Commission to pass its fuel and fuel-related costs on to its customers.

The North Carolina Sustainable Energy Association (NCSEA) has asked the NC Utilities Commission to encourage Duke Energy to develop and implement a natural gas hedging strategy in the next year. NCSEA filed a post-hearing brief on July 3.

The North Carolina Utilities Commission approved the $32 billion merger of Duke Energy and Progress Energy on June 29, 2012. Under the NC Utilities Commission order, the combined company will retain the name, Duke Energy and will be headquartered in Charlotte. Once combined Duke Energy and Progress Energy will be the world’s second-largest private utility, according to Duke Energy.

The North Carolina Sustainable Energy Association (NCSEA) intervened in the merger proceedings.

Energy has the potential to become a driving force in North Carolina's economic recovery, according to business leaders who spoke at a forum Jan. 3. The demand and need for affordable energy was a focus of the 10th annual Economic Forecast Forum in the Research Triangle Park.

The forum, a program of the NC Bankers Association and the NC Chamber of Commerce, featured an address by Governor Bev Perdue who said she was hopeful about North Carolina's economic growth in 2012. Joining Perdue were business leaders and economists who had a cautiously optimistic economic outlook for the new year centered in part around the energy sector's increasing role in state's economy.

"We made significant improvements in 2011," said Lou Ebert with the NC Chamber of Commerce. "The energy sector offers great promise, whether it's clean tech, wind, solar, nuclear, shell gas or offshore exploration."

Bill Johnson, who will become the president and CEO of Duke Energy  when its merger with Progress Energy is completed, is scheduled to discuss energy's role in North Caroliina's economy at the 10th Economic Forecast Forum. The event, sponsored by the NC Chamber and the North Carolina Bankers Association, has been scheduled for noon, Jan. 3 at the Sheraton Imperial hotel in Research Triangle Park.

Other participants inclue Tom Skains, chairman, president and CEO of Piedmont Natural Gas and Kevin Kabat, president and CEO of Fifth Third Bancorp who will give the keynote speech.

To read more about the forum, visit the Triangle Business Journal. To register for the event, click here.