Holly Springs homeowners dispute Duke Energy claim denials after power surge, tell me about this news

In Holly Springs, North Carolina, several homeowners are disputing Duke Energy after the utility denied compensation claims for widespread electrical damage caused by a severe power surge.

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The Incident and Damage

According to reports from local consumer investigative teams (including WRAL’s Five On Your Side), the issue occurred immediately after electricity was restored to the neighborhood following an outage. When the power came back on, a sudden surge tore through residential electrical systems, resulting in thousands of dollars in property damage.

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Affected residents reported fried appliances and electronics, including:

• Major home appliances such as refrigerators, ovens, and washing machines

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• Smart electronics, modems, routers, and televisions

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• Dedicated infrastructure, such as breaker panels, thermostats, and HVAC heat pumps

The Dispute Over Denied Claims

When residents filed reimbursement claims with Duke Energy for repairs and replacements, the utility denied liability.

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The friction centers on standard utility liability policies:

• Duke Energy’s Stance: Like many large energy providers, Duke Energy’s standard tariff and claims policies generally state that the utility does not guarantee uninterrupted service. They typically deny claims for damages resulting from weather events, acts of nature, wildlife, or third-party interference, arguing they are only legally liable if property damage resulted directly from verified utility negligence.

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• Homeowners’ Stance: Residents argue that the surge was an operational issue tied directly to the grid restoration process rather than typical household wear or weather. Because multiple neighboring homes experienced simultaneous failures the moment power returned, residents contend Duke Energy should take responsibility for the failure rather than forcing homeowners to bear the costs or absorb steep insurance deductibles.

Next Steps for Residents

With direct claims denied by Duke Energy’s third-party claims administrators, homeowners are seeking recourse through several alternative routes:

1. Filing through Homeowners Insurance: Many are forced to file personal insurance claims, though this often requires paying out-of-pocket deductibles and carries the risk of increased premiums.

2. State Utilities Commission: Consumers can escalate disputes to the North Carolina Utilities Commission (NCUC) or the Public Staff consumer services division to review whether utility equipment failure or negligence was handled appropriately.

3. Legal or Small Claims Options: Some homeowners explore small claims actions to independently evaluate whether the utility’s restoration procedure fell below required operating standards.