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Duke pauses assessment of US energy loan program ahead of Trump administration
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Duke pauses assessment of US energy loan program ahead of Trump administration
Dec 2, 2024 11:32 AM

NEW YORK, Dec 2 (Reuters) - Duke Energy ( DUK ) is

pausing its assessment of certain U.S. energy infrastructure

improvement loans, citing uncertainty over the future of funding

under the Trump administration, according to a filing from last

week.

The electric utility told North Carolina regulators in a

letter on Nov. 27 that it would put on hold its work to

determine the costs and benefits of tapping into the federal

Energy Infrastructure Reinvestment Program.

"It is in the best interest of customers to pause any

further efforts or expenditures until February, following the

appointment of the new administration to gain clarity on the

future of the EIR Program," Duke said in its filing with the

North Carolina Utilities Commission.

The EIR includes low-interest loans, under the Inflation

Reduction Act, to help companies transition away from

high-carbon-emitting power sources like coal to cleaner or more

efficient energy systems.

The viability of the IRA, which has been a key driver in the

development of low- and no-carbon power supply since being

signed into law in 2022, has been thrown into question since the

election last month of Donald Trump, who will be sworn in as

president on Jan. 20.

In North Carolina, coal-fired power plants are expected to

be phased out in the 2030s to meet state climate-focused goals.

Duke has plans to shift some of its coal-fired power production

to natural gas and renewable sources like wind and solar.

EIR loans could help lower Duke's infrastructure buildout

expenses and lower costs to consumers, said Michelle Carter,

clean energy campaigns director at the North Carolina League of

Conservation Voters.

"There are many more possibilities for the existing coal

plants that we have in the state that could use the EIR program

to transition to cleaner and cheaper energy much faster than

Duke is currently doing," Carter said.

Duke was not immediately available for further comment.

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