Concerns About Deal Between Duke Energy and Piedmont Natural Gas

CHARLOTTE, N.C. — New assurances that your utility bills will not go up.

“We don’t anticipate this is going to result in any changes to rate as a result of the merger,” says David Trusty of Piedmont Natural Gas.

That promise comes after the announcement Monday that Duke Energy will buy Piedmont Natural Gas for $4.9 billion. Representatives from both companies say their rates are regulated by the North Carolina Utilities Commission, and the merger could actually save you money.

“The good news, I think it will help us be more efficient to keep cost low, by cycling away from coal and getting more natural gas in the system we’ve been able to lower cost,” says Tom Williams of Duke Energy.

Greenpeace USA climate and energy campaigner Monica Embrey disagrees. “Every year or two Duke Energy goes and approaches the North Carolina Utilities Commission and asks for a rate hike. The past four years we’ve seen 3 rate hikes with numbers going into double digits,” says Embrey.

Embrey also says Duke Energy’s decision to buy Piedmont could cost you in the long run.

“Duke Energy is entitled to raise the prices to build new power plants. That’s actually the main way they raise prices on us, by charging us for new construction of power plants, and by 2030 they want nine new natural gas plants.”

For now both Duke Energy and Piedmont Natural Gas says they don’t plan on a rate hike, but they say the decision isn’t up to them.

“All I can say is we have the utility commission that sets our rates, and we are looking to them to do that, that’s not what we decide,” says Williams.

Piedmont reps say they will retain their name and operate as a separate business unit under Duke Energy.

The deal is not complete until it is approved by the North Carolina Utilities Commission. They hope to have that by the end of 2016.