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Home My WebLink AboutLetter to DEQ - Request to Confirm Public Water for Plants_20170426WALLACE and GRAHAM, P.A. ATTORNEYS AT LAW MONA LISA WALLACE t 525 NORTH MAIN STREET TELEPHONE: (704) 633-5244 WILLIAM M. GRAHAM tt SALISBURY, NORTH CAROLINA 28144 FACSIMILE: (704) 633-9434 MICHAEL B. PROSS * 1-800-849-5291 EDWARD L. PAULEY ** www.waHacegraham.com JOHN S. HUGHES, IV WHITNEY V. WALLACE MARK P. DOBY R. DANIEL WALLACE W. MARLOWE RARY, H t Also licensed in PA, SC and TX KRYSTAL C. DRAUGHN tt Also licensed in TX TIFFANY N. MACK * Also licensed in MD and NY W. BENJAMIN TOBEY ** Also licensed in KY and W V April 26, 2017 VIA EMAIL Secretary Michael Regan Secretary, North Carolina Department of Environmental Quality 1601 Mail Service Center Raleigh, North Carolina 27699-1601 Michael.Regankricdenn gov RE: Confirmation that Public Water Will Be Provided Dear Secretary Regan: On December 7 and 15, 2016, Duke Energy submitted proposed water supply plans pursuant to N.C. Gen. Stat. § 130A-309.211(cI). The proposed plans for Rogers Energy/Cliffside, Allen, Buck, and Marshall were included in these submissions and offered eligible households connection to public water supplies. Water filtration systems were recommended as the only option to be provided to eligible households surrounding the Roxboro, Mayo and Belews Creek plants. The Department of Environmental Quality ("DEQ") conditionally approved Duke's proposed plans in January 2017. As you are aware, N.C. Gen. Stat. § 130A-309.21 l(cl) includes the presumption in favor of public water stating, "Preference shall be given to permanent replacement water supplies by connection to public water supplies." As set forth in detail in the March 15, 2017 letter from our colleague Bryan Brice, Jr., the analysis offered by Duke Energy regarding the relative cost of public water connections for these communities is flawed and does not fulfill the requirements of the statute to provide a permanent replacement water supply. As confirmed in Duke Energy's letter of March 19, 2017, well owners at these plants submitted alternative cards indicating their preference for a public water connection. ' Therefore, we request that the DEQ carry out the preferred public water option mandated by statute and conclude the provision of public water is not cost prohibitive and direct Duke Energy to provide a connection to public water to all plants listed above. ' We would urge that the DEQ request from Duke Energy a full accounting of each of the well owners that submitted an alternative selection card indicating their preference for public water connection. Rogers Energy Complex - Cliffside Unrealistically, Duke Energy's proposed water supply plan required a 100% acceptance level to achieve targeted cost per eligible household for provision of public water. On or about Friday, April 21, 2017 Duke Energy submitted a revised well eligible list to the DEQ that indicated each household's water supply selection. These numbers include two households on Dysart Road that were added to those households originally eligible to choose connection to public water as indicated in Duke Energy's March 29, 2017 letter to DEQ. According to Duke Energy's most recent well eligible list, there are 62 well eligible properties at Cliffside. 52 of the 62 properties have selected connection to public water supply; 1 opted out entirely; 2 selected water treatment systems; and 7 have not made a selection. Clearly the overwhelming choice for the Cliffside community is connection to public water. Pursuant to N.C. Gen. Stat. § 130A-309.211(c1) presumption in favor of public water we request that the DEQ conclude the provision of public water is not cost prohibitive and direct Duke Energy to provide a connection to public water for those Cliffside households that have requested such. Allen Steam Station Duke Energy's proposed water supply plan required a 76% acceptance level, including the three Aqua communities, to achieve targeted cost per eligible household for provision of public water. The households in the Aqua communities were not given a choice, but have relied upon Aqua to make a selection. As of the date of this letter, no selection has been made. On or about Friday, April 21, 2017 Duke Energy submitted a revised well eligible list to the DEQ that indicated each household's water supply selection. According to Duke Energy's most recent well eligible list, there are 285 well eligible properties at Allen. 161 of the 285 properties have selected connection to public water supply; 2 opted out entirely; 13 selected water treatment systems; and 109 have not made a selection including those living in Aqua neighborhoods that were not given any choice. The overwhelming majority of our clients that are Aqua customers have requested direct connections to municipal water. Additionally, Duke has repeatedly stated in letters to both the State and Aqua that connection to public water is the most efficient and effective option for the Aqua communities. Currently, 56% of the households have chosen connections to public water, not including the Aqua communities. Aqua includes 77 additional households. Because Duke's preference is to connect the Aqua communities to public water that percentage would increase to 84% exceeding the threshold requirement for the Allen community. Pursuant to N.C. Gen. Stat. § 130A-309.211(cl) presumption in favor of public water we request that the DEQ conclude the provision of public water is not cost prohibitive and direct Duke Energy to provide a connection to public water for those Allen households that have requested such. Furthermore, we request that the DEQ make the determination that individual households in Aqua communities will be given connection to public water. Buck Steam Station Duke Energy's proposed water supply plan required a 76% acceptance level to achieve targeted cost per eligible household for provision of public water. On or about Friday, April 21, 2017 Duke Energy submitted a revised well eligible list to the DEQ that indicated each household's water supply selection. According to Duke Energy's most recent well eligible list, there are 191 well eligible properties at Buck. 170 of the 191 properties have selected connection to public water supply; 5 opted out entirely; 4 selected water treatment systems; and 12 have not made a selection. Based upon these numbers, 89% of households have chosen connections to public water clearly exceeding the threshold set for the Buck community. Pursuant to N.C. Gen. Stat. § 130A-309.211(cl) presumption in favor of public water we request that the DEQ conclude the provision of public water is not cost prohibitive and direct Duke Energy to provide a connection to public water for those Buck households that have requested such. Marshall Steam Station Duke Energy's proposed water supply plan required a 66% acceptance level to achieve targeted cost per eligible household for provision of public water. On or about Friday, April 21, 2017 Duke Energy submitted a revised well eligible list to the DEQ that indicated each household's water supply selection. According to Duke Energy's most recent well eligible list, there are 88 well eligible properties at Marshall. 69 of the 88 properties have selected connection to public water supply; 2 opted out entirely; 9 selected water treatment systems; and 8 have not made a selection. Based upon these numbers, 78% of households have chosen connections to public water clearly exceeding the threshold set for the Marshall community. Pursuant to N.C. Gen. Stat. § 130A-309.211(c 1) presumption in favor of public water we request that the DEQ conclude the provision of public water is not cost prohibitive and direct Duke Energy to provide a connection to public water for those Marshall households that have requested such. We would be more than happy to discuss this and other issues with you at your earliest convenience. Sincerely, WALLACE & GRAHAM, P.A. 4t`� IZ_C,731� Mona Lisa Wallace CC: Bryan Brice Cathy Cralle-Jones Cary McDougal Mark Anderson Joan Dinsmore Bill Lane Jay Zimmerman Debra Watts