From the Southern Environmental Law Center:

Landmark settlement benefits customers and environment in the Carolinas, sets national model

Clean energy groups have reached an agreement with
Duke Energy and Progress Energy to address concerns the groups raised
in a South Carolina Public Service Commission proceeding on the
proposed merger of the two companies. If the merger is approved, the
newly formed holding company, Duke Energy, will be the largest
electric utility in the country. Two subsidiaries, Duke Energy
Carolinas and Progress Energy Carolinas, will continue as operating
companies in South Carolina and North Carolina.

Under the agreement, the two operating companies will set specific
energy efficiency targets, contribute funding to renewable energy
development in South Carolina, and commit to an enforceable schedule
for retiring certain older coal-fired power plants (previously
announced by the utilities) in the Carolinas that lack modern
pollution controls.

The Southern Environmental Law Center negotiated the agreement on
behalf of Environmental Defense Fund, the Coastal Conservation League,
and Southern Alliance for Clean Energy. The groups intervened in the
merger proceedings to advocate for inclusion of clean energy programs
as a result of the merger. The agreement, which impacts the companies' operations
in both South Carolina and North Carolina, was signed by
the parties on December 8.

"We are proud to have worked with the two companies to reach this
agreement, which will yield consumer, public health and environmental
benefits for both the Carolinas," said SELC senior attorney Gudrun
Thompson. "And because this merger will create the nation's largest
electric utility, we think it's fitting that the new Duke Energy is
showing leadership on moving the Southeast and our nation toward a
clean energy future."

"This agreement sets firm deadlines for phasing out older
technology in favor of energy efficiency and clean power. These
are smart, practical business decisions that help position Duke Energy
to meet environmental regulations and lower consumer costs," said Greg
Andeck, manager of Environmental Defense Fund's Utility Initiative.

"We are pleased to reach an agreement that puts the new Duke
Energy on a path to modernize its fleet and phase out old, polluting
technology in favor of energy efficiency," stated Stephen Smith,
executive director of SACE. "We hope this agreement serves as a
cornerstone for company initiatives to meet future energy challenges
in a manner that benefits the environment and its customers."

"This agreement will help create jobs through smart investments in
energy efficiency and renewable energy, spur innovation in clean,
renewable energy sources, and save customers money. It's a
win-win-win," said Hamilton Davis with Coastal Conservation League.

Under the agreement, the two operating companies, Duke Energy
Carolinas and Progress Energy Carolinas, will:

* Each adopt an annual energy efficiency (EE) savings target of 1% of
retail sales starting in 2015, and a cumulative target of 7% of retail
sales from 2014 to2018. The targets are subject to the
companies' good-faith efforts to submit and obtain approval of EE
programs under applicable North Carolina Utilities Commission and
South Carolina Public Service Commission processes;

* Contribute a total of $1 million a year for two years to Palmetto
Clean Energy, Inc., a South Carolina non-profit organization that
promotes and supports locally produced renewable energy and delivery
of renewable energy to the electric grid; and

* Commit to schedules to retire older coal-fired power plants that
lack modern pollution controls, totaling more than 3,000 megawatts. The
companies previously announced these coal-plant retirements as
part of the non-binding, long-range plans they submit each year to the
state utility commissions. The settlement agreement renders those
commitments enforceable. A provision in the agreement allows the
companies to seek an extension if these retirements would compromise
reliability in its service area.

Parties to the agreement are Environmental Defense Fund, the Coastal
Conservation League, Southern Alliance for Clean Energy, Duke Energy
Corp., Progress Energy, Inc., Duke Energy Carolinas, LLC, and Progress
Energy Carolinas, Inc.