Carbon Regulation Legislation: Nonmarket Strategy for Duke Energy
Introduction
Background of Duke Energy and Carbon Regulation Legislation
On the surface, there would appear to be nothing particularly noteworthy about Duke Energy relative to other large investor owned utilities (IOUs) in the United States. Based in Charlotte, North Carolina, Duke provides electricity to over 4 million customers in North Carolina, South Carolina, Ohio, Kentucky, and Indiana. Of the 36,000 megawatts of generating capacity in their portfolio, about 70% is coal-based, which—in addition to resulting in significant CO2 emissions—earned Duke Energy the dubious honor of being the 12th largest corporate producer of air pollution in the United States in 2008.[1] However, Duke Energy is well known in environmental circles for another reason: its CEO, Jim Rogers, has been an outspoken proponent of U.S. legislation to address greenhouse gas emissions.
Even before a U.S. cap and trade system became a foregone conclusion in the minds of many energy industry executives, Jim Rogers was at the forefront of the discussion, willing to meet with environmentalists and legislators alike. He has long held that the current state of fossil fuel-based electricity generation in the U.S. is unsustainable, and that legislation is needed to establish expectations and predictability for companies. However, despite the many friendships and working relationships he has developed with environmentalists and legislators alike, he currently finds himself in a precarious situation as he tries to influence the type of cap and trade legislation that will be implemented in the next Congress.
At the core of the debate regarding climate change legislation are the two most ...