Duke Energy eyes Florida case on utilities and fracking

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Florida Power & Light has asked regulators for permission to use ratepayer money to develop natural gas wells, and Duke is interested in how the case turns out.

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John Downey

Senior Staff Writer- Charlotte Business Journal

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Duke Energy (NYSE:DUK) says it is following a Florida utility's proposal to get involved in natural gas fracking as Duke considers whether that would be an appropriate investment for it as well.

Duke spokeswoman Jennifer Zajac says the company is always considering possible investments, and mining its own natural gas through fracking is something the company has thought about.

She says Duke has "not gone very far down that road," and it has made no decisions about whether to pursue any such investment. Nor is it close to making any decision, she says.

The Florida Public Service Commission could rule by the end of the year on a filing that would allow Florida Power & Light to get involved in the fracking business.

'Speculative business'

The Fort Myers News Press reports that the utility wants to set up a partnership with Louisiana-based PetroQuest Energy Inc. to develop up to 38 wells in Oklahoma. It wants the commission to let it charge its customers for the costs of that venture, which FP&L calculates at $190 million over the 50-year partnership.

Stephen Smith, executive director of the Southern Alliance for Clean Energy, thinks that would be a remarkably bad idea.

"FP&L wants to use ratepayer money for a relative speculative business venture outside of what the utility is set up to do, provide electricity at a reasonable cost," he says. "And the benefits would largely go to its shareholders."

The utility argues that customers would benefit from lower-cost gas, saving $50 million to $100 million over the partnership period.

John Downey covers the energy industry and public companies for the Charlotte Business Journal.