Dive Brief:

• Duke Energy pumped wastewater from a coal ash pond last week, a move that state regulators say may be illegal. Duke contends its permit for the site allows it to pump water into the nearby Cape Fear River.

• Environmentalists contend that Duke may have been trying to drain the pond to save future cleanup costs.

• Meanwhile, North Carolina regulators rejected Duke Energy's plans to deal with its coal ash ponds in the state, a signal that a rift between the utility and agency may be growing.

Dive Insight:

What a mess. State regulators blocked citizen lawsuits against Duke. State regulators consulted with utility lawyers about keeping environmental lawyers out of settlement discussions about the ash ponds. Federal prosecutors are considering criminal charges. One way or another, Duke is going to have to clean up its 33 ash ponds in the state. One of the big questions is whether ratepayers will be on the hook for the full cost of the cleanup or if Duke shareholders will pay the price.