The company will pay $68.2m in fines and $34m for environmental projects, through its subsidiaries including Duke Energy Carolinas, Duke Energy Progress and Duke Energy Business Services, to the US Justice Department over the violation of Clean Water Act.

The investigation was prompted by coal-ash waste release from a storm water pipe under a coal ash basin at the retired Duke Energy-owned Dan River Steam Station into the Dan River in Rockingham County, North Carolina, in February 2014.

Apart from Dan River Steam Station, the Asheville steam electric generating plant in Buncombe County, the H.F. Lee steam electric plant in Wayne County, and the Riverbend steam station in Gaston County, also illegally discharged coal ash and/or coal ash wastewater.

The three subsidiaries were also found to be guilty of failing to maintain equipment at the Dan River and the Cape Fear steam electric plant in Chatham County.

US Justice Department Environment and Natural Resources Division Assistant Attorney General John Cruden said: "The massive coal ash spill into North Carolina’s Dan River last year was a crime and it was the result of repeated failures by Duke Energy’s subsidiaries to exercise controls over coal ash facilities."

North Carolina Western District Acting US Attorney Jill Rose said: "The defendants will now have to comply with the terms imposed by the court, including paying hefty financial penalties and making significant financial contributions toward improving the quality of impacted waterways, wetlands and our water supply system."

Duke’s subsidiaries have also been directed to excavate and close coal ash impoundments at the Asheville, Dan River, Riverbend and Sutton facilities.