| A rally in Charlotte last week against a corporation driving climate change. Photo: Sally Kneidel |
Last year during the DNC, I heard activist leaders refer to Charlotte as
“ground zero for climate change.” I was startled by that. I
grew up in Charlotte and the city has seldom surprised me. But that made
me curious. So I decided to get more active in Greenpeace-Charlotte, and
started reading the websites of NC WARN and Rainforest Action Network (RAN).
Turns out, the culprits are very specific. Climate activists are focused
primarily on two corporate giants.
Duke Energy and Bank of America are both headquartered in Charlotte, and
they’re both major players in climate change, as in driving climate
change, through coal. The tipping point where climate change will
accelerate regardless of what we do is getting very close. And coal is a major
cause – a cause that we could eliminate. According to Greenpeace, coal
is the largest single source of climate-changing pollution in the world.
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| Activists in Charlotte. Photo: Sally Kneidel |
bank is the biggest bank in the U.S. and the country’s top financier of the
coal industry. RAN reports that BofA has invested more than $6.4 billion
in coal in just the last couple of years, ranging from coal mining to the
construction of coal plants. RAN is running a major campaign against Bank
of America’s involvement in coal. For more info about BofA’s link to climate
change, see ran.org/coal.
And then there’s Duke Energy, the other culprit and the focus of this
post.
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| Activists in Charlotte “Duke Energy: Make Charlotte a CLEAN energy hub” Photo: Sally Kneidel |
largest corporate utility. Duke’s stature in the energy sector is
formidable. As we approach the climate’s tipping point, will Duke use its
influence to lead the world away from the economic and social chaos of a
disintegrating climate? The answer appears to be simple, and
definitive. No. Duke’s “2012 Sustainability Report” blithely admits
to “an upward trend in our CO2 emissions in the years ahead.” Duke’s CO2
emissions will keep rising because their 20-year plan (the “IRP”) calls for
continued heavy reliance on coal, bolstered by nuclear and natural gas. With
this plan, Charlotte’s electric company is likely to maintain its distinction
as our nation’s second-largest utility emitter of CO2.
So, surely Duke has some clean renewables in the mix. Maybe elsewhere, but
not here. While other utilities across the country are turning to wind and
solar, Duke Energy Carolinas plans to derive only 2.2% of its generating
capacity from wind and solar, and only 2.2% from energy-efficiency programs for
at least the next 20 years. Shocking but not that surprising, when
you understand the corporate mindset that made Duke the biggest in the
world. You see, the more power plants Duke builds, the more profit they
make. Duke is guaranteed by the state to receive a 10.7% rate of return
on equity (ROE), which includes construction projects. Solar threatens
this business model. For one thing, solar panels can allow families to generate
on-site power, rather than buying electricity from a huge utility. With
such a decentralized power source, Duke would lose considerable control over
ratepayers.
Ever wonder who pays for all the construction of expensive power plants with
Duke’s current plan? Ratepayers like you and me. Not North Carolina’s new
energy-hogging data centers (server farms). They and many giant corporations
get special deals and much lower rates. (Google “Duke’s rate rigging
scheme” for a great explanation of that; it’s on the website of NC WARN.)
No, you and I will pay for the new plants we don’t want, or at least, that’s
Duke’s plan for us, as captive ratepayers. Since Duke’s a monopoly in NC, we
have no other electric utility to choose.
But we do have a voice, and we have a responsibility to use it.
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| Demonstration against rate-hikes in Charlotte. Photo: Sally Kneidel |
14% rate increase for the average residence and 10% for small to medium-sized
businesses. (The already low rates for many industrial customers and data
centers will increase only 3%.) The rate-hike request will be Duke’s third
in just four years. They’re also requesting to increase their guaranteed rate
of return (ROE) to 11.25% — a very high profit margin compared to most other
businesses. One frustrating aspect of this rate-hike request, for us
ratepayers, is that Duke wouldn’t need these new power plants if they
aggressively promoted conservation, energy-efficiency, and solar rooftops
instead.
If the idea of paying for more than your share of unnecessary plants makes you
mad, you have a chance to show your opposition. The N.C. Utilities Commission regulates Duke and must approve their
rate-hike requests.
N.C. Utilities Commission in Raleigh NC, with expert witnesses testifying. Those of us who are fighting the rate-hike will hold a press conference and ratepayers’ assembly before the hearing, in front of the building, and everyone is welcome. The address is Dobbs Building, 430 North Salisbury St., Raleigh. The hearing itself is not a public hearing, the Utilities Commission will not hear comments from the public, but we can sit inside the room where evidence is presented and let our presence be known.
If you don’t make it to the Evidentiary Hearing, you can still submit your comments on the rate hike by emailing statements@ncuc.net or mailing a letter to:
Public Staff — N.C. Utilities Commission
Consumer Services Division
4326 Mail Service Center
Raleigh, NC 27699-4326
To clarify that you’re writing about the Duke rate hike, mention
“NCUC Docket E-7, Sub 1026″ in your letter or the subject line of your
email.
The Utilities Commission is our best opportunity right now to influence Duke’s
future actions. This is the time to email them. Without rate hikes, Duke can’t
continue its current plan for the future. If you care about the world your
grandchildren will live in, if you care about your pocketbook, please let them know. Tell them you object to paying for more dirty and dangerous
plants.
