Duke Energy leader says N.C. electricity rates could rise due to higher carbon taxes

A top North Carolina energy executive says electric rates in the state could increase as much as 35 to 50 percent if Congress passes carbon legislation that is beginning to be developed in Washington. Ellen Ruff, president of Duke Energy Carolinas, spoke at Elon Sept. 9 as part of the university’s Voices of Discovery series.

Ellen Ruff delivers the Voices of Discovery lecture Sept. 9
She said North Carolina, West Virginia and other states that get more than half their electricity from coal-fired generating plants, could see big price hikes if federal lawmakers pass certain versions of carbon legislation. Duke Energy supports carbon legislation, but opposes laws that would put an undue burden on the 25 states that made decisions decades ago to build more coal plants, rather than other types of electricity generation.

Ruff leads Duke Energy’s utility business in North Carolina and South Carolina, providing electricity and services to more than 2.3 million customers. Duke Energy operates three nuclear stations, eight coal-fired stations, 31 hydroelectric stations and numerous combustion turbine units with a generating capability of nearly 21,000 megawatts.

Ruff said Duke Energy faces major challenges, with growing demand for power, and a need to modernize its infrastructure and its aging coal generating plants. She says her company is promoting a national discussion on the long-term issues related to energy.

“The discussion on energy policy in the country and in our state is very limited,” Ruff said. “This is a dialogue that needs to be stimulated at every level. None of these are short-term issues.”

Ruff says Duke Energy is planning for a sustainable energy future, but must also meet the immediate needs to supply electricity. She outlined plans in five areas:

Coal: Duke plans to build a new coal-fired generating plant at its Cliffside Steam Station, retiring older, less efficient coal units and adding enhanced emissions controls. Ruff says this is likely the last coal plant Duke will ever build, and calls it a “bridge to a low carbon future.”

Nuclear: Duke is planning its first nuclear generating plant since 1986, building the William S. Lee III Nuclear Station in Gaffney, S.C. The company is currently applying for licenses with the Nuclear Regulatory Commission and Ruff says the station could be online after 2016.

Natural Gas: Duke is planning to build two 620 megawatt natural gas-fired plants in Rowan and Rockingham counties, which will go online in 2010 and 2011.

Renewables: Duke is investing in a solar farm in Davidson County, a rooftop solar generating project across North Carolina and a landfill gas project in Durham. Ruff notes that renewable energy sources are currently more expensive and less reliable than other generating sources.

Efficiency:
Duke is investing $50 million to encourage energy conservation, including the “save-a-watt” proposal, which is pending in North Carolina. Ruff says the focus on energy efficiency is a fundamental shift in the company’s business model.

Ruff has led Duke Power’s strategic planning, compliance, environmental health and safety, and external relations strategy efforts. She was also accountable for establishing and maintaining relationships with key regulators at the state and federal level.

Ruff says Duke has adopted a sustainability philosophy that commits the company to do business in a way that is good for people, the planet and company profits. She says Duke recognizes that natural resources are limited and that it must be mindful of the needs of future generations

Named president of Duke Energy Carolinas in 2006, Ruff serves on the executive committee of the North Carolina Citizens for Business and Industry’s board of directors and was appointed by Gov. Mike Easley in 2006 to a three-year term on the North Carolina Economic Development Board.