My remarks regarding NC Clean Power Plan and Lawsuit

Last month, I was given the opportunity to speak to representatives of the North Carolina’s Department of Energy and Natural Resources at a public hearing. Our state is included in law suit against the EPA having the authority to require the states to develop a Clean Power Plan to reduce emissions. In companion to this suit, our state leaders developed a poor attempt, in my view, at addressing the required plan.

Here are my remarks which had to be limited to three minutes.

My name is Keith Wilson. I am an Independent voter and NC taxpayer.

I am speaking to you as both a tree hugger and business person.

I am disappointed in our state’s position on the Clean Power Plan and advocate moving the ball further down the path of renewable energy than the plan is required to do.

I say this as per the 2015 Global Risks Report prepared by the World Economic Forum, the two greatest risks noted by member organizations over the next 10 years are:

(1) Global Water Crisis and

(2) Failure to act on climate change

The need to move to renewable energy is more than a climate change issue, it is a water issue. As noted by the excellent Charlotte Observer series last month, we have global, national and regional water crisis, which will only be made worse by climate change.

Water is the new oil.

In the Observer series, it noted that Duke Energy loses about 1%- 2% of water on a daily basis when creating power from the Catawba River using fossil fuel and nuclear energy. The water is lost through dissipated steam.

At a conference called “Our Water: An Uncertain Future” last month, the director of Duke’s Water Strategy noted that Duke Energy includes climate change impact in their water projection models. He noted that they expect to lose an additional 11% of reservoir water due to more evaporation from climate change.

Per Duke’s projections, the Catawba River cannot support the growth in the Metro Charlotte area without change.

The move from water intensive fossil fuel and nuclear energy to renewable energy is key, as solar and wind energy need not be water reliant to create power.

Man-influenced climate change will only make our water problem worse.

From a business standpoint, there are several reasons why the move to renewable energy is key.

The fossil fuel industry likes to tout jobs and impact on people in poverty as drawbacks to the move. These are shortsighted reasons, as solar and wind energy jobs are growing like gangbusters with double digit growth.  On the cost of energy being higher, that is also shortsighted as well and is using the wrong equation.

The cost of production of renewables continues to fall and wind energy is the most cost effective source in the UK and Germany, right now. But, that is not the right equation.

A total cost equation will look at the present value cost of production,

  • plus healthcare,
  • plus environmental degradation,
  • plus water loss,
  • plus litigation,
  • plus maintenance of coal ash sites.

When these total costs are compared, my guess is the result will easily favor renewable energy.

Further, companies like Apple, Facebook and Google are relocating power intensive data centers to NC due to our solar energy success and incentives. These companies are attracted to innovation.

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So, the tree hugger in me says you better be concerned about our water and what climate change will do to it.

The business person in me says, the better bet is on renewables.

Let me close that this is not just a progressive issue. Per a ClearPath survey of conservative voters, 75% favor a move down the path of renewable energy.

It is time our state and national leaders caught on to this desire.

My strong recommendation is to improve the Clean Power Plan and stop wasting taxpayer money on the shortsighted EPA lawsuit.

When things get too cozy – the travails of Duke Energy and DENR

I have been a customer and shareholder of Duke Energy for over thirty years. I have also been a North Carolina taxpayer for the same length of time. For the most part, Duke Energy has been a good company and recognized as such in its industry. Yet it has had a few moments when it got involved with some accounting irregularities in South Carolina and it bought into the gas transmission industry before it exited it with much egg on its face. With that context, I want to share my disappointment in Duke on the coal ash spill that could have been avoided along with their response. I also want to add that criticism of too cozy a relationship between Duke, the NC Department of Energy and Natural Resources (DENR) and our governor is well placed.

As many of you know, Duke Energy is responsible for coal ash leaks on the North Carolina and Virginia border which have spilled coal ash into the Dan River. The “Dan” provides water to several communities in Rockingham County, which ironically is the seat of the Senate Leader in NC, Phil Berger. Rightfully so, Senator Berger has expressed outrage at Duke and their failure to notify people timely and their poor response.  However, the senator is also responsible for helping defang the environmental protections in our state and promoting fracking with an industry loaded committee to study the issue, so he has contributed to our lackluster environmental protection.

Duke is concerned about fixing the problem, but what troubles me is the issue of the coal ash ponds in our state was raised by several environmental groups last year in a lawsuit. They shared many concerns over the dozens of coal ash ponds, but the DENR decided to make it easier by consolidating the lawsuits into one and then settling with Duke for a fine of $99,000 and a commitment to clean things up on Duke’s timetable. That number is correct – a Fortune 500 company was fined the amount of $99,000, which cannot even count as being a slap on the wrist. As of this post, DENR has been sued by the Environmental Protection Agency and copies of emails have been requested to discern any foul play.

I would be remiss if I did not mention that our governor, Pat McCrory was an employee of Duke Energy before winning the governor’s race. However, this cozy relationship has been fairly cozy for some time, predating McCrory’s tenure. But, under the guise of reducing so-called burdensome regulations on industry, the environmental restrictions have been greatly loosened in our state, especially the past three years. Our General Assembly has passed some questionable legislation as well as considering rolling back a requirement to do more alternative energy, before it was beaten back when they realized late how successful the solar energy industry has been here. The Speaker of the House, Thom Tillis, noted his surprise that NC was the 5th most prolific solar energy state in the country at the time.

As a Duke shareholder, I have sent two emails to the previous and current CEOs about cleaning up the coal ash ponds. The first one was last spring to Jim Rogers and the second one was this past week to Lynn Good, the new CEO.  She came out in the paper saying the clean-up of the Dan River spill is on Duke (shareholders) while the clean up of other coal ash ponds will be on the customers. This last statement has not sat well with customers. Good is thinking too much like she was still in her old job of CFO and not like someone whose company screwed up and people were harmed. I understand her rationale, but by failing to act last year, Duke threw away the last shred of goodwill on this subject. The governor is banging on the lid of a trash can now, but he is a little behind on the issue in most people’s minds, as well.

Duke Energy, you are better than this. You have done some nice things in alternative energy and shut down some coal plants. That is good and you should be commended. Now, do the right thing and clean up the ponds before the next accident. Do what you should have done last year when you were apprised of the concerns. You should also be thinking about more creative ways to pay for this and not place the lion’s share of the burden on customers. And, please continue decommissioning the coal-fired plants as you have been doing. We need to divorce ourselves from coal at a faster clip as there is no such thing as clean coal and it does not get cleaner sitting in a coal ash pond.

I would also encourage you to link to a much more thorough post in Amaya’s blog called The Brabble Rabble.  Amaya includes greater detail about the defanging of the DENR and other environmental groups in North Carolina. Here is a link: http://thebrabblerabble.wordpress.com/2014/03/12/politics-north-carolina-style-coal-ash-pollutes-nc-waters-as-regulatory-body-endures-job-and-funding-cuts-duke-energy-promises-to-pass-clean-up-costs-on-to-customers/#comment-2251