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9/27/2025
WT Staff
 Knowledge of an environmental crime? Give us a call at 877-52-WATER (877-529-2837), or email info@wtga.us
Sep 27, 2025 210 pm EDT
CrimeBox
Clean Water Act Conviction Fiscal Year 2015; Case ID# CR_2746 (N Carolina)
Parent company ordered to guarantee payment for its subsidiaries' criminal fines, totalling more than $100 million for release of coal ash
"Over two hundred and sixteen million Americans rely on surface water as their source of drinking water. Duke Energy put that precious resource at risk in North Carolina as the result of their negligence. Companies that cut corners and contaminate waters on which communities depend, as Duke did here, will be held accountable." Cynthia Giles, Assistant Administrator, US EPA Office of Enforcement and Compliance Assurance
The defendants in this case are three subsidiaries of one of the largest public utility companies in the USA. Duke Energy (NYSE: DUK) is a Fortune 150 company based in Charlotte, NC. At the time of the case, Duke and its subsidiaries served 8.6 million electricity customers and 1.7 million customers for natural gas across several states. Waste materials from the defendant's power plants are held in coal ash basins:
- 108 million tons in North Carolina
- 6 million tons in South Carolina
- 1.5 million tons in Kentucky
- 35.6 million tons in Indiana
- 5.9 million tons in Ohio
A decade ago, the defendants accepted liability for a massive spill of coal ash impacting navigable water of the USA at Eden, NC., pleading guilty to a total of nine felony violations of the Clean Water Act. Four charges were laid following the spill impacting the Dan River with five additional charges following as investigators uncovered more evidence. By the conclusion of the investigation, the defendants had been charged with failing to maintain equipment, unlawfully discharging coal ash and/or coal ash wastewater at the Dan River steam station in Rockingham County, the Cape Fear steam electric plant in Chatham County, the Asheville steam electric generating plant in Buncombe County, the H.F. Lee steam electric plant in Wayne County and the Riverbend steam station in Gaston County.
From the Department of Justice official press release in May 2015, here is what the court officials had to say about the case:
"The massive coal ash spill into North Carolina's Dan River (in 2014) was a crime...the result of repeated failures by Duke Energy's subsidiaries to exercise controls over coal ash facilities," said Assistant Attorney General John C. Cruden of the Justice Department's Environment and Natural Resources Division. "The terms of these three plea agreements will help prevent this kind of environmental disaster from reoccurring in North Carolina and throughout the United States by requiring Duke subsidiaries to follow a rigorous and independently verifiable program to ensure they comply with the law."
"Duke Energy's crimes reflect a breach of the public trust and a lack of stewardship for the natural resources belonging to all of the citizens of North Carolina," said U.S. Attorney Thomas G. Walker for the Eastern District of North Carolina. "The massive release at the Dan River coal ash basin revealed criminal misconduct throughout the state – conduct that will no longer be tolerated under the judgment imposed by the court today."
Justice was served for the spoiling of the Dan River ecosystem, the sentencing package being the first step to restoring public faith in the water supply. Duke Energy Business Services LLC, Duke Energy Carolinas LLC and Duke Energy Progress Inc. as per plea agreements will pay a criminal fine and a separate community service payment. The National Fish and Wildlife Foundation was awarded $24 million at the defendants' expense, invested in riparian habitat in North Carolina and Virginia. Further, $10 million was allocated to an authorized wetlands mitigation bank for the purchase of wetlands suitable to offset the long term environmental impacts of the electricity generator's extensive coal ash basins. The defendants were ordered to pay restitution to the federal, state and local emergency spill response agencies that attended the Dan River spill.
Duke's subsidiaries operating 18 facilities in five states were required to set up environmental compliance programs for federal and state laws, monitored by an independent, court-appointed agent. Audit information will be made public. Compliance will be monitored by a third party, reported to the court and the U.S. Probation Office. The companies were ordered to excavate and close coal ash impoundments at the Asheville, Dan River, Riverbend and Sutton facilities.
The parent company Duke Energy Corporation was required to guarantee the payment of fines, community service payments and for the performance of the nationwide and statewide environmental compliance plans. "Duke's environmental crimes required a special financial review of their actions to which we were proud to join our partners in investigating," said Special Agent in Charge Thomas J. Holloman, III of the IRS Criminal Investigation. "The considerable fines, formal apologies and massive cleanup initiatives will impact the Duke image and brand, assuring the public that corporations will be held accountable for their gross actions involving the environment, wildlife and the communities of this great state."
Sentencing involved a federal fine and restitution payment totalling $102,000,000. The restitution payment for environmental projects and land conservation supporting rivers and wetlands in the region impacted, North Carolina and Virginia. Further, the power company and its subsidiaries had to certify resources adequate to secure its coal ash repositories in North Carolina, a value of $3.4 billion dollars.
Federal Fines: $68,000,000; Community Service/Restitution: $34,000,000; Probation: 72 months; Environmental Compliance bond $3.4 billion
The criminal investigation was conducted by the Criminal Investigation Division, Region Four and the Office of Inspector General of EPA, Criminal Investigations of the IRS and North Carolina State Bureau of Investigation with assistance from the Federal Bureau of Investigation and the Department of Defense Criminal Investigative Service.
See last CrimeBox, "Manufacturer dilutes wastewater samples to appear compliant with permit, sentenced six years later", here.
CrimeBox briefs are compiled from US EPA records and the defendants' on line material.
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