Holly Springs homeowners dispute Duke Energy claim denials after power surge

Residents of a Holly Springs neighborhood are seeking answers and reimbursement from Duke Energy after they say a power surge damaged appliances, electrical systems and other equipment in at least 30 homes.

The damage happened in June along Climbing Tree Trail in the 12 Oaks Neighborhood after residents lost power on what initially seemed like a typical summer night.

“It was just like a normal summer night, I guess, and we happened to lose power,” resident Manny Velosa said.

But residents said the bigger problems began when the electricity came back on.

“Everybody's fire alarm went off,” Velosa said.

He described the sound inside the neighborhood as “like gunfire going off really.”

Neighbor Kristen Merson said smoke filled parts of her home. Residents reported damage to garage door openers, refrigerators, pool equipment, Tesla chargers, hair straighteners, hair dryers and other items.

“We had to replace our entire electrical panel,” Merson said.

Residents question what caused the surge

Residents told WRAL News they were told by a Duke Energy employee at the scene that night that a less experienced lineman reconnected power without realizing a tree had fallen on a line farther down the road, causing the surge.

WRAL News has not independently verified that account.

Residents also shared a voicemail they said came from Duke Energy consumer affairs in which the caller discussed the damage and said, “They should be taking care of this at this time.”

Duke Energy's policy allows compensation when the company determines it is responsible for all or part of a customer's loss.

But homeowners later began receiving notices denying their claims.

“We never even thought that they would deny it. We thought it was just like obviously this is their fault,” Merson said.

Duke Energy told WRAL News that its investigation determined the original outage was caused by a tree that fell from outside the utility's right-of-way maintenance area.

“Following that review, claims for this event were denied because the outage was caused by conditions beyond Duke Energy's control and the available information does not establish company responsibility,” Duke Energy said in a statement.

The company said crews worked to restore customers incrementally while identifying the source of the outage. Once the obstruction was cleared, customers were returned to normal service.

Duke Energy said it reviewed each customer's claim based on the facts, circumstances and documentation provided.

“We understand that power outages and damages can be frustrating and disruptive, and we recognize the inconvenience these situations may cause,” the company said.

Duke Energy also said customers may be able to seek reimbursement through their insurance companies, depending on their policies.

Homeowners turn to 5 On Your Side

Residents say Duke Energy's explanation does not resolve their central question: What caused the damaging surge when their electricity was restored?

At least one homeowner received a denial letter citing an unforeseeable equipment failure rather than the fallen tree.

The residents dispute Duke Energy's conclusion that the company isn't responsible for the damage. The precise cause of the surge remains in dispute and would require technical evidence to establish.

Frustrated by the claims process, Merson found a previous 5 On Your Side report involving families in Creedmoor who experienced a separate power surge. In that case, Duke Energy committed to reimbursing affected families after determining the company was responsible. Merson then contacted 5 On Your Side. 

“I was like, ‘Please, can you help us?’” Merson said.

For now, the Holly Springs homeowners are still seeking reimbursement and a definitive explanation for what happened when their power was restored.

“It's been a slow, painful process,” Merson said.