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A North Carolina judge will hear arguments Thursday in a case that could chart new legal territory: whether an electric utility can be held responsible for the local costs of climate change.
The Town of Carrboro filed suit last year, accusing Duke Energy of deceiving the public about the dangers of fossil fuels, a strategy town leaders say delayed the clean-energy transition and left taxpayers on the hook for millions of dollars in damages.
“We need to protect our community from future harms, and this is why we find ourselves here as a plaintiff in this lawsuit,” Carrboro Mayor Barbara Foushee said.
Carrboro estimates it could face up to $60 million in future costs from road repairs, flooding and higher electricity use in public buildings as hotter temperatures and heavier rain batter the town. The complaint also cites industry ads from the 1990s questioning whether climate change was real, which attorneys say created confusion and stalled action.
Duke Energy, in its motion to dismiss, says Carrboro’s claims are misplaced and preempted by federal law. The company argues the Clean Air Act gives the Environmental Protection Agency authority over greenhouse gas emissions, not local governments. It also says climate change is a global phenomenon that cannot be traced back to a single utility.
“Artful pleading cannot transform the City’s complaint into anything other than a suit over global greenhouse gas emissions,” Duke lawyers wrote in a brief, citing similar cases dismissed in other states.
Carrboro counters that the case is not about regulating emissions but about deception. In its opposition filing, the town said Duke ran “widespread deception campaigns about its fossil-fuel products and climate change” and that courts have a duty to hear such claims.
The lawsuit is unusual because most climate cases in the United States have targeted oil and gas producers. Legal experts say bringing utilities into the fold could raise new questions for courts, since power companies are heavily regulated and also responsible for keeping the lights on.
The hearing comes as Duke Energy is expanding its natural gas infrastructure after state lawmakers this summer repealed a requirement that the company cut carbon emissions 70% by 2030. The General Assembly overrode Gov. Josh Stein’s veto, eliminating the interim deadline while keeping a 2050 net-zero goal in place. Analysts warn the shift could drive up customer costs, while supporters say it ensures reliable electricity as data centers and new factories move to North Carolina.
Duke has pledged to retire its coal plants by 2035 and reach net-zero emissions by mid-century. In a recent filing, the company said it is “executing an ambitious clean energy transition” that balances affordability and reliability.
Thursday’s arguments are scheduled for 10 a.m. in the North Carolina Business Court at the Wake County Courthouse in Raleigh.
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