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NC to Duke Energy: Have You Dumped ALEC Yet?

  • Posted on: 10 December 2013
  • By: Connor Gibson

Amid a dump of leaked American Legislative Exchange Council documents published by The Guardian last week, North Carolina is asking Duke Energy: Have you finally dumped ALEC?

NC WARN and ProgressNC have both raised the question, based on Duke Energy's inclusion in a list of "Lapsed" private sector ALEC members featured in The Guardian and an article in the Raleigh News & Observer.

ALEC's notes for Duke Energy's lapsed membership, as of April 22, 2013, only say "Merged with Progress Energy, new contacts," indicating that Duke's absence was only temporary as new personnel were assigned to participate in ALEC's work. Duke and Progress merged into the largest U.S. utility company last year.

Duke Energy, North Carolina's monopoly utility company, has long been a member of ALEC. Last year, Duke Energy refused to leave ALEC even after being petitioned, emailed and called by over 150,000 people to defect. ALEC's controversial legacy includes blocking climate change policies as part of Big Oil's 1998 master plan, the NRA's Stand Your Ground laws, which increase homicide rates, and "Voter ID" bills that suppress legitimate American voters, especially students, the elderly and people with brown skin.

While Duke Energy has resisted calls to dump ALEC, it has responded to the pressure by distancing itself from several items on ALEC's dirty lobbying laundry list:

  • Duke has repeatedly pushed back on any association with ALEC's Stand Your Ground and voter suppression laws.
  • Duke's call for action to address global warming clash with ALEC's legacy of climate change denial, including new draft policies to interfere with the U.S. Environmental Protection Agency's greenhouse gas rules, and a bill that forces teachers to misrepresent climate change science to their students, now law in at least four states, thanks to state legislators implementing ALEC's model bills.
  • Duke has explicitly denounced ALEC's attacks on state Renewable Portfolio Standards-laws to increase utility electricity generation from cleaner sources. Duke takes credit for helping create North Carolina's RPS.

So why has Duke Energy resisted popular pressure to leave ALEC, including from its own ratepayers? If Duke doesn't like ALEC's history shilling for climate change deniers, nor the National Rifle Association, nor the Republican party's voter disenfranchisement strategies, what is making Duke stay?

ALEC's new attacks on rooftop solar electricity producer are right in line with Duke Energy's attempt to pay back 29% less to homeowners whose solar panels feed extra electricity back into the grid, despite the fact that these homeowners fronted the costs of installing and maintaining solar panels themselves.

Duke is terrified of the prospect of rooftop solar energy, which threatens its century-old monopoly business model. Duke is used to being the dominant company providing power to North Carolina residents, and they can basically charge customers as much as they want. More customers are choosing to install their own solar panels as the technology rapidly becomes cheaper, keeping money in the pockets of ratepayers rather than Duke's executives.

ALEC's Updating Net Metering Policies Resolution, discussed last week at its States and Nation Policy Summit in Washington, DC, would complement dirty utilities like Duke Energy that are working to make it more costly for people to feed their own solar power into the electrical grid. See here for ALEC's new anti-environmental resolutions.

Which Utilities will be Using ALEC's State Lawmakers to Attack Solar Energy?

ALEC's utility member companies The new ALEC resolution was crafted with help from lobbyists at Edison Electric Institute, the primary trade association for Duke and most other large U.S. utility companies.

EEI's roster also includes Arizona Public Service (APS), the utility that tried to force Arizona's residential solar electricity producers to pay $50 per month for feeding unused electricity back into the grid. In the end, the monthly fee was reduced to $5 per month, which still serves as a disincentive for homeowners to install their own solar panels.

As it sought to make net metering more expensive for small-scale solar producers, APS lied to the public, denying its funding of anti-solar TV advertisements run by Koch brothers front groups.

APS recently rejoined ALEC after disassociating for a short year. ALEC's Energy, Environment and Agriculture task force includes APS and presumably Duke Energy, among other dirty energy giants. The EEA task force is governed by American Electric Power's Paul Loeffelman and Wyoming state Representative Thomas Lockhart, friend of the coal industry.

Duke Can Still Do the Right Thing

Duke Energy needs to make its intentions clear.

The company can go with the Koch brothers, ALEC, and companies like APS, and financially punish North Carolinians who choose to produce their own electricity. Or, it can finally dump ALEC, its bad policies and anti-democratic processes and shift to a business model that embraces the power of the sun. It can continue to plan around a cost on carbon emissions and phase out dirty coal that aggravates everything from climate change to water pollution to asthma.

We hope to get the right answer from Duke Energy soon.

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Koch throws ALEC under the bus to dismiss George Zimmerman funding rumor

  • Posted on: 17 July 2013
  • By: Connor Gibson

Amid public outrage over the acquittal of George Zimmerman after the fatal shooting of unarmed teenager Trayvon Martin, Koch Industries wants to clarify something: they did not finance Zimmerman's legal defense...but they did and do continue to fund the American Legislative Exchange Council (ALEC), which took up the NRA's Stand Your Ground law in Florida and spread it to over two dozen other states. 

Using their Koch "Facts" website, lobbyists at Koch Industries pushed back on the Zimmerman rumor and cite Snopes, a popular reference for confirming or debunking rumors. Snopes explains how Koch has backed ALEC's operations, including peddling Stand Your Ground laws that increase homocides:

"A rumor claiming that Koch was paying the legal fees of George Zimmerman, the defendant in the Trayvon Martin shooting case, and calling for a boycott of Koch-owned paper companies began to spread in mid-April 2012. This rumor appears to be tied to a combination of George Zimmerman's launching a web site soliciting donations for his lawyers and living expenses and news reports linking Koch to the American Legislative Exchange Council (ALEC), a conservative policy group "that came under attack after the Trayvon Martin shooting for pushing Stand Your Ground gun laws nationwide".

ALEC's work for Koch and other companies has resulted in a barrage of bad state policies, taken home by ALEC's member state legislators who then turn a wishlist of corporate-crafted bills into law. Koch in particular is interested in ALEC's polcies to prevent action on climate change at every opportunity, blocking accurate teaching of climate science in K-12 schools, promotion of fossil fuel extraction, attacking clean energy incentives, limiting liability for corporations when their actions harm the public, and other cynical tactics that undermine the public interest. 

Koch Industries is a member of ALEC's Energy, Environment and Agriculture task force. Koch lobbyist Mike Morgan sits on ALEC's national corporate board and the Koch brothers' foundations have given hundreds of thousands to ALEC's general operations, supporting a wide variety of issues including the dissemination of the NRA's Stand Your Ground laws. 49 corporations and 6 nonprofits have stopped supporting ALEC due to Stand Your Ground, Voter Suppression and other controversial policies, including Wal-Mart, the nation's largest gun retailer. Meanwhile, Koch has stood behind ALEC during controversy after controversy.

Every "fact" that Koch Industries posts comes with an invisible asterick that readers must fill in themselves. Koch uses KochFacts to intimidate, lie and bend the truth, and will continue to do so in attempts to prevent reporters and watchdogs from highlighting its bad behavior.

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Duke Energy and ALEC Attack North Carolina Renewable Energy Portfolio Standard

  • Posted on: 15 January 2013
  • By: Connor Gibson

NC Rep. Mike Hager: ALEC member and former Duke Energy employee.

Corporate polluters are taking aim this year at states with renewable energy laws, starting with an attack on North Carolina's clean energy economy by a corporate front group known as ALEC with support from Duke Energy, ExxonMobil, and Koch Industries. North Carolina state Representative Mike Hager says he is confident that he has the votes needed to weaken or undo his state's clean energy requirements during his second term. Rep. Hager is a former Duke Energy engineer and a member of the American Legislative Exchange Council, or ALEC. Duke and Progress Energy (now legally merged) have given Rep. Hager $14,500 for his last two election bids, outspent only by the NC Republican Party.

This is where ALEC makes things awkward for Duke Energy: the law that Rep. Mike Hager is targeting (2007 SB3) was created with input from Duke Energy, and Duke explicitly opposes ALEC's "Electricity Freedom Act," the model law to repeal state Renewable Energy Portfolio Standards (REPS). Duke Energy re-asserted its support for North Carolina's REPS law to the Charlotte Business Journal last April and Progress Energy publicly supported the law before merging with Duke.

Apparently, Duke forgot about supporting North Carolina's clean energy incentives somewhere along the way. Duke Energy remains a paying member of the American Legislative Exchange Council.

Duke Energy and outgoing CEO Jim Rogers have dismissed over 150,000 concerned citizens demanding that Duke leave ALEC due to its role in protecting polluters, suppressing voters, increasing gun violence and other serious threats to the public on behalf of ExxonMobil, the National Rifle Association, Reynolds tobacco and other corporate interests with a rich history of negligence and dishonesty.

ALEC: The Polluter's Voice

The American Legislative Exchange Council (ALEC) creates model state laws rolling back protections on our health, our clean air and water, public safety, public education…public anything, really. State legislators that support a corporate ideology pay a small fee to become ALEC members, working alongside giant companies to create models bills that are then introduced in states across the country.

In contrast to Duke Energy's "Call to Action" supporting climate legislation and clean energy development, it has not abandoned ALEC's long record of denying climate science and blocking solutions to global warming. ALEC focuses this year on undoing state laws that increase production of clean energy like wind and solar power.

ALEC's Electricity Freedom Act model bill was written by the Heartland Institute, a shill group made infamous for comparing those who recognize climate scientists to terrorists like Ted Kaczynski.

This dirty ambition is ALEC's self-stated priority on energy issues this year--repealing state laws that created Renewable Energy Portfolio Standards (REPS), including North Carolina's SB3. Todd Wynn, a corporate influence peddler who heads ALEC's Energy, Environment and Agriculture task force, named North Carolina as one of several states ALEC will focus its clean energy attacks, citing a debunked report from the Koch-funded Beacon Hill Institute of Suffolk University's economics department. Like ALEC, Beacon Hill is part of the Koch-funded State Policy Network. See the Morning Sentinel and a scathing Portland Press Herald editorial for important critiques of the Koch-funded Beacon Hill reports cited by Todd Wynn.

Actually...Clean Energy has Treated North Carolina's Economy Well!

We've known for decades that phasing out fossil fuels (coal, oil, gas) and ambitiously implementing clean energy not only slows our sprint toward irreversible, catastrophic climate change, but stimulates the economy and creates jobs that do not poison us. In North Carolina, SB3 has helped create the current 15,200 full-time equivalent clean energy jobs in NC, up 3% from the previous year, and generated $3.7 billion in economic activity in 2012 (North Carolina Sustainable Energy Association 2012 Industry Census).

While ALEC has touted a pile of Koch-funded reports written with the pre-determined conclusion that clean energy is ALWAYS too pricey, the Charlotte Business Journal reports that SB3 has a "negligible impact on customer bill increases" for Progress Energy Carolinas' customers, at about 41 cents per month.

If let be, North Carolina's Senate Bill 3 would ensure at least 3% of North Carolina's energy is from renewable sources this year, increasing to at least 12.5% by 2021. North Carolina appears to be one of the first states subjected to ALEC's dirty energy agenda this year.

What Next for the ALEC Attacks?

Expect similar ALEC attacks on clean energy laws in states around the country. According to its own documents, ALEC spent the last couple years monitoring states attempting to introduce state-level renewable energy portfolio standards in West Virginia, Vermont and Virginia as well as legislative attacks on REPS laws in New Hampshire and in Ohio (by Sen. Kris Jordan, an ALEC member).

Now with rumors of war appearing in North Carolina, it appears that ALEC has morphed from the opportunistic observer to the coordinator of attacks on our states' clean energy laws.

For more on how the American Legislative Exchange Council is degrading public policies across the United States, see ALECExposed.org.

This piece was crossposted on Greenpeace blogs.

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