NC Supreme Court again weighs Duke Energy rates
Recent Cases
North Carolina's highest court is examining whether state utilities regulators correctly weighed the consumer impact of two rate increases for a Duke Energy operating unit.
The state Supreme Court was scheduled to hear arguments Monday in two lawsuits in which Attorney General Roy Cooper argues regulators didn't sufficiently consider the size of rate increases. The two rate cases involve Duke Energy Carolinas, a Duke Energy subsidiary serving customers in Durham and western North Carolina.
One case involves a 4.5 percent average increase approved last year for two years, growing to a 5.1 percent increase thereafter. The second involves a 7.2 percent rate increase originally approved in 2012. Consumers are already paying the higher rates.
Cooper appealed the 2012 rate increase and the Supreme Court last year ordered the North Carolina Utilities Commission to reconsider its size in light of its effect on customers. The commission did, but came to the same conclusion.
Cooper's staff attorneys argued in court filings that regulators didn't really make the findings of fact about the effect of changing economic conditions on customers required by the Supreme Court in last year's ruling.
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Workers’ Compensation Subrogation of Administrative Fees and Costs
When a worker covered by workers’ compensation makes a claim against a third party, the workers’ compensation insurance retains the right to subrogate against any recovery from that third party for all benefits paid to or on behalf of a claimant injured at work. When subrogating for more than basic medical and indemnity benefits, the Texas workers’ compensation subrogation statute provides that “the net amount recovered by a claimant in a third‑party action shall be used to reimburse the carrier for benefits, including medical benefits that have been paid for the compensable injury.” TX Labor Code § 417.002.
In fact, all 50 states provide for similar subrogation. However, none of them precisely outlines which payments or costs paid by a compensation carrier constitute “compensation” and can be recovered. The result is industry-wide confusion and an ongoing debate and argument with claimants’ attorneys over what can and can’t be included in a carrier’s lien for recovery purposes.
In addition to medical expenses, death benefits, funeral costs and/or indemnity benefits for lost wages and loss of earning capacity resulting from a compensable injury, workers’ compensation insurance carriers also expend considerable dollars for case management costs, medical bill audit fees, rehabilitation benefits, nurse case worker fees, and other similar fees. They also incur other expenses in conjunction with the handling and adjusting of workers’ compensation claims. Workers’ compensation carriers typically assert, of course, that, they are entitled to reimbursement for such expenditures when it recovers its workers’ compensation lien. Injured workers and their attorneys disagree.