Duke Energy accused of kickbacks in lawsuit

Duke Energy accused of kickbacks in lawsuit

A former manager at Duke Energy Ohio has filed a lawsuit accusing the utility of paying millions of dollars in kickbacks to large industrial customers to win their approval of a 2004 rate increase.

John Deeds, 33, of Mount Carmel, in southwestern Ohio, was “abruptly terminated” in May, shortly after he asked his superiors in writing about payouts totaling $20 million in 2005 to unnamed industrial and commercial customers, according to the lawsuit.

Deeds’ lawsuit, filed Thursday in U.S. District Court, is seeking lost pay, compensatory damages and up to $40 million in punitive damages and legal fees.

“We believe the allegations are totally without merit, and we intend to defend against them vigorously,” said Steve Brash, a spokesman for Duke Energy Ohio, which operated as Cinergy Corp. until it was acquired by Duke Energy in April.

Deeds, a 16-year employee, questioned the payments to large customers shortly after he was appointed director of regulatory initiatives for Cinergy Retail Sales in 2005, according to the lawsuit.

Deeds sent an e-mail about his concerns to his boss, who told him that it was not Cinergy’s policy to put those types of concerns in writing and that he should never put them in an e-mail, the lawsuit said.

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