Overview
- A settlement announced Monday between the U.S. Department of the Interior and Duke Energy cancels the Carolina Long Bay lease (OCS‑A 0546) in federal waters and reimburses Duke about $129 million.
- Duke Energy said it will reinvest the $129 million in additional generating capacity and grid upgrades, naming possible uses such as new natural gas or advanced nuclear projects to boost reliability for Carolinas customers.
- The Duke deal is the fourth buyout this year and brings announced federal reimbursements for offshore wind lease terminations to roughly $2.6–$2.7 billion after earlier settlements with TotalEnergies, Ocean Winds partners, and Invenergy.
- Critics and several Democratic‑led states have sued or plan to sue, arguing the Interior’s use of the federal Judgment Fund to pay developers is procedurally improper and undermines federal leasing rules.
- Local and industry observers warn the cancellation removes planned low‑carbon megawatts, risks jobs and coastal economic benefits once tied to the project, and complicates regional grid planning as demand rises.