Duke Energy Carolinas says it cannot proceed with its proposed $50 million rooftop solar program unless North Carolina regulators remove restrictions on how the utility would recover the initiative's costs from customers.
The Triangle Business Journal reports that company officials believe restrictions could cause Duke to violate federal rules governing up to $250 million in energy-investment tax credits. Violating the federal regulations would force Duke to forfeit those federal tax credits, including $125 million targeted for Duke’s 825-megawatt Cliffside coal plant.
“That’s not a risk we can take,” said Keith Trent, Duke’s chief strategy and regulatory officer. Without a change in the state requirements, Trent said they are simply not going to be able to go forward with the program.
If they don't implement the program, it is likely the utility will not be able to meet its solar energy requirement for 2010.