Duke Energy Provided Temporary Power to PEACH Apartments – Permanent Power Date Unknown

GROWTH & DEVELOPMENT

EMPOWERment is hopeful that Duke will relent soon, as PEACH Apartment tenants wait to move into affordable housing

CHAPEL HILL – Duke Energy and a subcontractor installed a temporary meter for the PEACH Apartments on Monday, with power expected to be restored by 5 p.m. to prevent mold in the new construction. However, it wasn’t until Tuesday that the power was restored.

EMPOWERment, the nonprofit owner of the PEACH affordable housing project, is facing delays due to Duke Energy’s interpretation of metering laws, which has led to a complaint being filed with the North Carolina Utilities Commission. The issue stems from Duke’s February notification about the metering problem and EMPOWERment’s subsequent legal and administrative hurdles. Duke Energy, as the power provider, is being asked to provide a solution. EMPOWERment is seeking $86,000 to comply, a sum they cannot afford, and faces a potential delay of four to six months without power. The Utilities Commission is expected to decide by June 23 whether more meters need to be installed with Duke Energy, giving Duke Energy 10 days to respond.

Delores Bailey, Executive Director of EMPOWERment Inc., was excited that Duke Energy might be installing permanent power to the PEACH Apartments and was consequently meeting with workers to investigate the situation, as several Duke Energy trucks and workers were at the location. However, that was not the case.

Bailey discovered that, as she met with the Duke workers, she felt this was potential progress toward having permanent power installed; however, Duke Energy had not made a decision to that effect. Bailey, who was frustrated, said, “All we tried to do was the right thing–and I don’t know how it turned out to be so wrong.”

To rectify the current situation, the setup of temporary and potentially permanent lighting and electrical systems for a construction project was discussed. The subcontractor, Piper Electric, was hired five weeks ago to install the lights. There was confusion about the permanence of the meter setup, with some believing it could become a permanent solution. A conditional inspection was passed, allowing for the temporary establishment of power. The goal is to have construction workers and subcontractors return to complete tasks. The project, which began in January, aimed to have tenants move in by May, but delays occurred. Non-profit organizations, including Habitat for Humanity, are involved in helping tenants move in when the time comes.

History of PEACH Apartments

PEACH Apartments, the long-awaited affordable housing project of EMPOWERment Inc., has been brought to a standstill just as tenants were about to move in. The acronym is derived from Pine Knoll, EMPOWERment, Affordable, Community, Housing (P.E.A.C.H.).

The PEACH Apartments has been a poster child for affordable housing developments in Chapel Hill, with additional projects planned for the future. At the groundbreaking in October 2023, the community’s support was palpable. Delores Bailey, Executive Director of EMPOWERment, said, “This is just the beginning; I don’t see anything that can stop us from building more apartments.”

EMPOWERment demonstrated remarkable financial prudence by raising enough funds to construct the apartment buildings and ensuring they were built debt-free. This strategic approach has enabled the organization to maintain affordable rents for its tenants, who earn at or below 30% of the Area Median Income (AMI).

With the 10 apartments at 107 Johnson St. built, the ribbon-cutting ceremony held on April 25, and tenants ready to move in, Bailey finds herself in a dire situation. She has been left with no choice but to file a consumer complaint against Duke Energy Progress with the North Carolina Utilities Commission. The urgency of the situation is apparent as every day without power increases the risk of mold, and our tenants have been ready to move in since May.

Taken at the official PEACH Apartments groundbreaking in Oct. 2023: (Left to right) Tai Huynh, Chapel Hill Town Council Member; Delores Bailey, EMPOWERment Executive Director; Pam Hemminger, former Mayor of Chapel Hill, Paris Foushee, Chapel Hill Town Council Member, and educator Alean Fearington. Photo by Laurie Paolicelli.

That was then – this is now

Nick Jimenez, senior attorney at the Southern Environmental Law Center (SELC), spoke with TLR: “The problem stems from there has been a general prohibition on master meters in multi-family residential buildings in North Carolina since 1977, but there is a very clear exception that was added in 2013.” Jimenez explained that the exception allows you to use a master meter if the landlord and the tenants formally agree in the lease to include the utilities in the rent; then they can do so.

According to the press release provided by Jimenez, “This came about because people who are already doing some of the most valuable community-building work out there found a way to use solar energy to lower the cost of living for our low-income neighbors,” said Jimenez. “Using solar energy to lower the cost of living to help neighbors who need it is about the best use of solar I can think of. EMPOWERment is absolutely within its rights here, and it deserves electric service immediately.”

“To facilitate the rooftop solar, EMPOWERment’s contractors installed a single electrical meter for the entire building, rather than an individual meter for each of the ten units. The contractors submitted these plans to Duke Energy in July of 2024, and Duke Energy ran the underground service for the single meter in October of 2024,” continued Jimenez.

Bailey told TLR that EMPOWERment Inc. decided to use one meter for the entire apartment complex to accommodate rooftop solar panels installed to reduce energy costs for low-income residents who would rent the apartments. The nonprofit’s contractors submitted plans for the single meter in July 2024, and Duke Energy ran the underground service for the single meter in October 2024, Bailey said, but the power company didn’t notify the nonprofit that it wouldn’t provide service until February 2025.

Executive Director of EMPOWERment, Delores Bailey, is proud of the modern kitchen facilities offered in the nearly completed PEACH Apartments. Photo by Michelle Cassell.

Why did it take until recently for Duke Power’s objection to be recognized as an issue?

According to Jimenez, “Duke thought that EMPOWERment was going to be reselling power if they installed rooftop solar, which they’re not going to do. But that also wasn’t the problem that Duke is saying it had–there was this kind of back and forth between Duke and EMPOWERment and EMPOWERment’s general contractor. Trying to understand what the problem was and what EMPOWERment’s options were was unclear. When they did get the answer in March from Duke, Duke told them: If you don’t like our interpretation of the law and how the single meter is the problem, you can go to the Utilities Commission with a complaint.”

A complaint was filed

The Southern Environmental Law Center (SELC) filed the complaint against Duke Energy Progress on behalf of the non-profit EMPOWERment Inc.EMPOWERment Inc. and has asked the state Utilities Commission for the following relief:

Require Duke to connect electric service to EMPOWERment’s PEACH Apartments immediately, while the Commission considers this Emergency Complaint and Request for Declaratory Ruling, to prevent the risk of irreparable harm and health risks from the lack of essential electric service.
Order that Duke permit the use of “master” meters when the lease between landlord and tenant states that the cost of electric and/or gas utilities is included in rental payments, as set forth in G. S. § 143-151. 42(b)(2).
In the alternative, declare that a multifamily residential building is eligible to use a single “master” meter, with the Commission’s approval, when served by a solar array.
Require Duke to provide permanent electric service to the PEACH Apartments under the current single-meter configuration.

“We are hopeful that Duke Energy will resolve this soon so our tenants can move into their new ADA-compliant homes,” said Bailey.

Are ADA rights applicable?

Robyn Dorton, an advocate with the Carolina Institute of Development Disabilities, thinks that Duke Energy blocking power to an ADA-compliant apartment complex that is built to house people who need affordable housing “… is not right. disabled people are hoping to move in and live in a home that would allow them to have affordable housing and a place that is safe for them.” said Dorton. “If I have to call everyone I know to call on Duke Energy, I will be doing so.”

Michelle Cassell is a seasoned reporter who has covered everything from crime to hurricanes and local politics to human interest over the course of 35 years. As Editor, she hopes to encourage writers of a wide range of backgrounds and interests in TLR’s coverage of Southern Orange County news. This reporter can be reached at: Information@TheLocal Reporter.press.