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Duke Energy (DUK) Disputes $6.6 Million Fine Over Coal Ash Spill
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Duke Energy (DUK - Free Report) is negotiating with North Carolina’s environment agency over a $6.6 million fine that it was given over a large spill of liquefied coal ash, according to a report from the Associated Press.
Based in Charlotte, NC, Duke, along with its subsidiaries operates as an energy company in both the United States and Latin America. Based in data from Statista, Duke is the largest energy company in the U.S. in terms of market value. The company has a current market cap of $56.3 billion.
Earlier this year, the Department of Environmental Quality in North Carolina ordered Duke to pay the fine, which the company has since contested. Duke first pleaded guilty to nine violations of the Federal Clean Water Act in May of 2015. It was supposed to pay $102 million in fines for allowing its coal-ash dumps at five power plants to illegally pollute the environment.
Specifically, it was revealed that Duke’s pollution had entered the Dan River. Investigations began after a pipe collapsed under a coal ash dump in 2014 and seeped into the river. Later, prosecutors found that the company had been illegally dumping toxic discharge since 2010.
The $6.6 million case is an offshoot of the original 2014 spill. According to the Charlotte Observer, Duke believes the fine amount is arbitrary and that the company is not being treated fairly. North Carolina is proposing penalties for pollution violations dating as far back as January 2012, but the company does not believe that is appropriate.
This is not the first time that Duke has continued to appeal a fine. In 2015, the company was handed a $25 million fine over groundwater pollution at a closed power plant. However, after many appeals it was able to reduce the fine to $7 million.
Duke’s case is one of many in the conversation involving our current means of energy production. Coal-burning power plants release harmful toxins such as arsenic, mercury amongst many others, which result in acid rain and damage water supplies.
Even so, shares of the company are up nearly 16% year-to-date, and earnings estimate revisions have not moved much. Current quarter estimates stand at $1.51 in earnings per share while full-year estimates stand at $4.59 respectively. Both of these estimates are down a cent from those of 60 days ago.
Incidents like the Dan River spill highlight the inefficiency of non-renewable energy, an issue that is being addressed through increased use of renewable energy sources such as solar and wind.
But for now, Duke Energy still retains its spot on the throne, and at a Zacks Rank #3 (Hold).
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Duke Energy (DUK) Disputes $6.6 Million Fine Over Coal Ash Spill
Duke Energy (DUK - Free Report) is negotiating with North Carolina’s environment agency over a $6.6 million fine that it was given over a large spill of liquefied coal ash, according to a report from the Associated Press.
Based in Charlotte, NC, Duke, along with its subsidiaries operates as an energy company in both the United States and Latin America. Based in data from Statista, Duke is the largest energy company in the U.S. in terms of market value. The company has a current market cap of $56.3 billion.
Earlier this year, the Department of Environmental Quality in North Carolina ordered Duke to pay the fine, which the company has since contested. Duke first pleaded guilty to nine violations of the Federal Clean Water Act in May of 2015. It was supposed to pay $102 million in fines for allowing its coal-ash dumps at five power plants to illegally pollute the environment.
Specifically, it was revealed that Duke’s pollution had entered the Dan River. Investigations began after a pipe collapsed under a coal ash dump in 2014 and seeped into the river. Later, prosecutors found that the company had been illegally dumping toxic discharge since 2010.
The $6.6 million case is an offshoot of the original 2014 spill. According to the Charlotte Observer, Duke believes the fine amount is arbitrary and that the company is not being treated fairly. North Carolina is proposing penalties for pollution violations dating as far back as January 2012, but the company does not believe that is appropriate.
This is not the first time that Duke has continued to appeal a fine. In 2015, the company was handed a $25 million fine over groundwater pollution at a closed power plant. However, after many appeals it was able to reduce the fine to $7 million.
Duke’s case is one of many in the conversation involving our current means of energy production. Coal-burning power plants release harmful toxins such as arsenic, mercury amongst many others, which result in acid rain and damage water supplies.
Even so, shares of the company are up nearly 16% year-to-date, and earnings estimate revisions have not moved much. Current quarter estimates stand at $1.51 in earnings per share while full-year estimates stand at $4.59 respectively. Both of these estimates are down a cent from those of 60 days ago.
Incidents like the Dan River spill highlight the inefficiency of non-renewable energy, an issue that is being addressed through increased use of renewable energy sources such as solar and wind.
But for now, Duke Energy still retains its spot on the throne, and at a Zacks Rank #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>