Carrboro Files Groundbreaking Lawsuit Against Duke Energy

Courtroom scene depicting the Carrboro lawsuit against Duke Energy

News Summary

The City of Carrboro has filed a historic lawsuit against Duke Energy, alleging decades of climate deception. This case marks the first time a U.S. municipality has taken legal action against an electric utility over climate policies. The lawsuit aims to hold Duke Energy accountable for climate-related expenses, amidst ongoing court proceedings that challenge the utility’s claims of regulatory authority and its responsibilities regarding emissions. With potential future damages estimated at $60 million, this lawsuit highlights the escalating role of local governments in addressing climate accountability.

Carrboro Files Groundbreaking Lawsuit Against Duke Energy Over Climate Deception

RALEIGH, North Carolina — The City of Carrboro has initiated a pioneering legal action against Duke Energy, accusing the utility company of decades-long climate deception and seeking to hold it accountable for climate-related costs. The lawsuit, believed to be the first of its kind where a U.S. municipality sues an electric utility over climate change policies, was discussed in a five-hour hearing held at the Wake County Courthouse.

Details of the Lawsuit and Court Proceedings

Attorneys representing Carrboro and Duke Energy presented oral arguments in court, overseen by Judge Mark Davis. The town is seeking to move the case into a pre-trial discovery phase with an eventual jury trial. The lawsuit was filed on December 3, 2024, following a unanimous vote by Carrboro’s town council authorizing legal action. The town argues that Duke Energy’s alleged actions have led to significant costs related to climate change, including repairs to roads, stormwater infrastructure, and the cooling of public buildings.

Funding and Legal Foundation

The case is funded by NC WARN, an environmental nonprofit organization, ensuring that local taxpayers are not bearing the financial burden, with assistance from the Center for Biological Diversity. The North Carolina Supreme Court transferred the case from Orange County Superior Court to the N.C. Business Court due to its complexity and the potential impact of the case on state policy.

Duke Energy’s Response and Legal Arguments

In response, Duke Energy filed a motion to dismiss, arguing that climate change results from global efforts and cannot be solely attributed to the utility. They contended that neither the North Carolina legislature nor federal authorities have empowered Carrboro to challenge state energy and climate policies. Duke Energy, which operates through subsidiaries Duke Energy Progress and Duke Energy Carolinas under regulation by the North Carolina Utilities Commission, claims that the lawsuit threatens to disrupt the existing regulatory framework.

Core Issues and Contentions

A key issue during the hearing was whether the lawsuit focuses on Duke’s alleged deception or its greenhouse gas emissions. Carrboro’s attorneys maintain that Duke’s previous statements and marketing make it liable for damages related to climate costs. The town asserts that Duke Energy participated in organizations acknowledging climate risks as early as 1968 but simultaneously collaborated with groups downplaying these risks. The lawsuit also accuses Duke Energy of misrepresenting its transition to renewable energy online, portraying itself as a leader in clean energy. Although Duke Energy’s current resource plan includes investments in solar, gas, battery storage, and wind, it has also abandoned some earlier commitments, including a goal to reduce greenhouse gas emissions by 70% by 2030, citing cost and reliability concerns.

Legal and Policy Challenges

Duke lawyers argued that federal regulations under the Clean Air Act govern greenhouse gas emissions, and state law should not be the basis of the case. The judge has instructed both sides to submit additional briefs within four weeks to clarify their positions, especially regarding the claim of standing — whether Carrboro can demonstrate a concrete injury from climate-related costs. Duke contends that Carrboro’s claims could hinder North Carolina’s regulatory approach and that the town cannot unilaterally influence the mix of energy sources used by Duke Energy’s subsidiaries.

Potential Impact and Future Proceedings

The case is notable for its focus on accountability from a utility company rather than traditional targets like oil and gas producers, marking a novel approach to climate litigation. Carrboro emphasizes that its suit does not seek to regulate emissions directly but is based on alleged deception related to fossil fuel marketing practices.

Financial Implications for Carrboro

The town has estimated that future climate-related damages could reach up to $60 million, covering flood damages and increased energy demands from rising temperatures. This potential financial impact is part of the broader debate during the court proceedings, highlighting the perceived costs of climate change at the municipal level.

As the legal process continues, the case could set a precedent for similar actions by other municipalities seeking accountability from utility companies over climate change issues and associated costs. The outcome remains uncertain, but it underscores the evolving role of local governments in climate litigation and policy discussions.

Summary

  • The City of Carrboro has filed a lawsuit against Duke Energy for alleged climate deception.
  • The case is the first known instance of a U.S. municipality suing an electric utility over climate policies.
  • Initial court hearing focused on whether the lawsuit centers on Duke’s alleged deception or its emissions.
  • Duke Energy contests the case, citing federal regulations and regulatory authority concerns.
  • Potential future costs for Carrboro from climate change are estimated up to $60 million.
  • The legal process is ongoing, with additional briefs due in four weeks to clarify key issues.

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Carrboro Files Landmark Lawsuit Against Duke Energy

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STAFF HERE RALEIGH WRITER
Author: STAFF HERE RALEIGH WRITER

RALEIGH STAFF WRITER The RALEIGH STAFF WRITER represents the experienced team at HERERaleigh.com, your go-to source for actionable local news and information in Raleigh, Wake County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the North Carolina State Fair, Raleigh Arts Festival, and the Hopscotch Music Festival. Our coverage extends to key organizations like the Greater Raleigh Chamber of Commerce and Visit Raleigh, plus leading businesses in technology and education that power the local economy such as Red Hat and NC State University. As part of the broader HERE network, including HEREAsheville.com, HERECharlotte.com, HEREGreensboro.com, and HEREOBX.com, we provide comprehensive, credible insights into North Carolina's dynamic landscape.

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