Ruff takes helm of Duke's Carolinas utility


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Duke Power took on the name of its parent, Duke Energy Corp., as it finished its merger with Cinergy Corp. The day also marked the inauguration of Ellen Ruff as the president of Duke Energy's Carolinas utility, which has over 2 million customers.

Ruff, who first joined Duke as a lawyer in 1978, spent some of the day talking with Duke workers at their Charlotte headquarters. She said she wanted the utility to help spur economic development, devise ways to share the merger-created cost savings with customers and prepare for construction of new power plants in the coming years.

One of the biggest tasks ahead is facing the prospect of a rate case in North Carolina, where state regulators could lower the amount of profits the utility is allowed to make.

As part of its agreeing to give regulatory approval for the merger, the N.C. Utilities Commission said it would either start a rate case next year, or ask Duke to prove its rates are reasonable.

Ruff said she isn't surprised at the condition, as it coincides with the expiration of a freeze on rates that Duke and N.C. regulators had agreed on - part of a compromise for Duke to install pollution controls on its coal-fired plants.

"We're not uncomfortable doing this or having one," Ruff said. "I can't handicap (where rates could end up)."

The Carolinas' utility is one of the biggest moneymakers for Duke Energy overall, earning about 39 percent of the total profits last year.

Consumer groups have been pushing for a Duke rate case for years. In such a case, state regulators would look at how much profit Duke is making and should be allowed to make, considering how much it has invested in power plants and other equipment. Such cases can take months.

Duke's last rate case in was in 1991.

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