Duke Energy to pay US$81mn in settlement

Duke Energy reached an US$81 million settlement agreement to end a 2008 lawsuit between a former Duke Energy subsidiary and certain large electric customers of Duke Energy Ohio.

The agreement would end a class action lawsuit, where the plaintiffs said that contracts between Duke Energy Retail Sales and certain large industrial and business customers of Duke Energy Ohio violated state and federal anti-trust laws.

The plaintiffs claimed those customers received financial benefits through the contracts that other customers did not receive.

Duke Energy, which sold Duke Energy Retail Sales to Dynegy, Inc., earlier this year, denied the allegations and maintained it complied fully with state and federal laws.

Duke Energy agreed to settle the case to avoid the costs and uncertainties of continued litigation, the company said. The agreement is subject to approval by the US District Court for the Southern District of Ohio, in Columbus.

Under the agreement, the US$81 million settlement would be allocated as follows:

• Up to US$25 million to Duke Energy Ohio residential customers who were customers at any time during the period beginning Jan. 1, 2005 and ending Dec. 31, 2008.
• Up to US$25 million to Duke Energy Ohio non-residential customers (such as businesses and local governments) who were customers at any time during the period beginning Jan. 1, 2005 and ending Dec. 31, 2008.
• US$8 million to fund energy-related programs to benefit Duke Energy Ohio customers who were customers at any time during the period beginning Jan. 1, 2005 and ending Dec. 31, 2008. Program details would be determined at a later date.