In a bid to avoid a potentially devastating energy tax hike, Duke Energy announced Wednesday that it is cutting $5 million in subsidies for its coal-fired power plants.
The cuts are part of a $20 billion plan to help the utility avoid a potential $5 billion hit to the utility’s revenue in 2021.
The company said the cut in payments to the power plants will help offset the additional tax revenue.
The decision comes just a week after Duke Energy CEO Jim Bell told investors that the utility has made progress on the project.
But, he acknowledged that the company still has work to do.
“Our objective is to have a competitive and competitively priced market, and we want to ensure that our customers can make the most of the value we provide,” Bell said at a conference call.
The announcement comes just days after Duke announced it would be closing its coal plants by the end of 2020.
The utility has said that it plans to invest in a clean energy portfolio to help meet the climate change goals set out in the Paris climate accord.