Q&A with Randy Wheeless
Last semester, the Technician published an opinion column discussing the future of renewable energy in North Carolina. The column mentioned Duke Energy and the role it plays in clean energy. Following this article, Randy Wheeless, a spokesperson for Duke Energy, reached out to the Technician to clear the air about Duke’s actions and ambitions for clean energy in the state and to address some plans for the year of 2016 during a Q&A.
Q: First off, how does Duke Energy work with NC State?
It takes a lot of engineers to run an electric utility. We’ve been fortunate over the years to have a great relationship with NC State and have hired many engineers from the university. I’m reminded of it every time the Wolfpack pulls off a big win. You see plenty of red the next day.
Q: Realistically, how much of the power running our energy grid comes from renewable energy?
Across our operations, last year Duke Energy generated 8 percent of its electricity from renewable sources such as solar, wind and hydro. When you combine that with nuclear, 34 percent of our electricity in 2014 was generated from carbon-free sources.
Q: What does Duke Energy have in store for North Carolina as far as picking up our solar game?
Duke Energy companies have more than 20 solar facilities in North Carolina. We are in the middle of a $500 million solar expansion in North Carolina. That’s leading to the completion of four major solar facilities in the eastern part of the state that will be among the largest in North Carolina.
We also recently announced a fifth project in Rowan County and are looking to develop projects in 2016 in the rest of the state. All of these efforts have made North Carolina fourth in the nation for solar power. Meanwhile, we continue to work with state leaders to develop offerings that will bring more solar options to our customers.
Q: Is Duke working on incorporating renewable energy sources other than solar? If so, what and where?
Duke Energy is actually one of the largest wind producers in the United States. We have wind farms in states where the wind resources are better: Texas, Wyoming and Kansas to name a few. We are also a leader in battery energy storage, which will be important as we incorporate renewable energy onto the electric grid. Until recently, a battery installation next to our wind farm in Texas was the largest in the nation. Our battery projects in North Carolina are giving us insight into how to better integrate renewable energy with the electric grid. We see a bright future for battery storage.
Q: The coal ash spill in the Dan River was a big deal and revealed a degree of negligence on the part of Duke and our state’s environmental regulators. How is Duke working to change how it handles its coal ash?
We’ve used the Dan River incident as an opportunity to set an industry-leading standard for the management of coal ash. We revamped the company to strengthen operational ownership and safe ash basin closure, creating new teams dedicated to this work. We examined the rest of our system to help ensure a Dan River didn’t happen again. We conducted comprehensive engineering reviews of ash basins and related piping, identifying areas where we could perform maintenance or make other improvements to further increase the margin of safety in our operations until basins can be closed.
We also brought in outside experts to provide insight and their perspectives. Specifically, we worked with UNC-Charlotte to create the National Ash Management Advisory Board, a group of academic and industry leaders in coal ash, engineering, environmental science and more.
Q: Given the financial burden of the fines and loss of the public’s trust that came with this spill, along with the inherent risks and externalities of coal burning, has Duke had any serious conversations about moving away from coal, in the short or long term?
Actually, we have been moving away from coal for some time. Since 2011, the company has closed 40 coal-fired units. We have lowered our overall carbon emissions approximately 20 percent since 2005. We have spent $9 billion modernizing and making our generation fleet more efficient. Since 2007, we have invested $4 billion in wind and solar across the U.S. and expect to invest another $3 billion over the next five years.
Q: The renewable energy tax credit will expire this year. Although it was always slated to end in 2015, Duke expressed it wasn’t interested in using its clout in the state to have this extended. Was there any reason the company wasn’t more vocal about seeing this renewed?
The tax credit was slated to expire at the end of 2015. We had been running our renewable expansion with that in mind. We would have been fined with it being extended. Last year, Duke Energy actually took greater advantage of the tax credit than any company. But we understood why others wanted it to expire as originally planned. Solar will continue to expand in North Carolina — with or without the state tax credit.
Q: Helping Wolfpack students stay informed, are there any pieces of legislation being suggested at the state level that advocates for clean energy that we would want to be aware of and support?
The General Assembly session has ended, so there’s nothing in the near term. Duke Energy advocated this year for a collaborate effort that would address a number of solar issues together. That would be more productive than battling over every single issue — and getting nothing done. We still think that’s a good idea. We were part of a similar effort in South Carolina in 2014. It didn’t grab a lot of headlines, but the end result was applauded by utilities, solar businesses and environmental groups alike.
Q: What, that you know of, can the average Joe reading the Technician do to help support a future with cleaner energy?
Being more energy efficient and taking advantage of energy efficiency programs is a start. We should all focus on how we expand renewable energy in North Carolina while keeping electric rates competitive for all customers. Duke Energy’s rates are 20 percent below the national average. It’s a reason why companies are choosing to locate in the state. We should all aim to keep our competitive electric rates and still be a leader in renewable energy.
Q: “Carbon neutral” sounds appealing, but it’s easier said than done. For our state’s energy grid, what are the biggest obstacles for kicking fossil fuels for good?
You’re right — it’s easier said than done. We will always need generation that operates 24/7. We believe a balanced portfolio of generation assets will be a part of our future. Nuclear is one source. Coal and natural gas are others, and they will still be a part of our mix in the future. And we believe renewable energy will continue to be a growing part of that mix.
Q: North Carolina is one of only four states that bans third-party sales for energy. Making this legal could help the renewable industry in North Carolina along and give our citizens more options from where we buy our energy. Would Duke Energy be supportive of seeing this brought to North Carolina?
We did not support the third-party sales bill proposed this session. However, we are supportive of policies that will make solar affordable to our customers in a responsible way — taking into account operational impacts and appropriately valuing solar and the grid. That will require collaboration with many stakeholders, and we look forward to being part of these conversations. Meanwhile, we have an obligation to serve all customers in our territory — and we take that task seriously.
