Wall Street is betting you and I will pay for coal ash cleanup

And Duke Energy shareholders are already reaping the benefits:

The aforementioned state legislation imposed a moratorium on Duke from seeking any sort of rate increase related to the clean-up through mid-January this year. But last week, the ratings agency Fitch upgraded Duke’s credit rating, in part reflecting the “significant, albeit manageable” coal-ash clean-up costs, as well as its expectation that the costs incurred will be recoverable from ratepayers.

Clearly, the market believes Duke will recover costs via ratepayers. The stock hit a high at the end of January, before the general correction in utilities sparked a selloff.

Once again we're entering the "tail wagging the dog" territory, where the stock market determines business behavior instead of the other way around, like it's supposed to. The same thing happened leading up to the mortgage crisis, and you see where that got us. Due to the NC Utilities Commission's bent responsibility to ensure utilities remain "profitable," Duke Energy can legally argue that not allowing them to recover costs from ratepayers will bring down their stock values, thus hurting their overall profits. The fact that Duke's stock price was artificially inflated in anticipation of the NCUC's ruling will not even be mentioned, unless the public representative or somebody like NCWARN brings it up. That's no way to do the people's business.

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