A North Carolina town filed a lawsuit on Wednesday accusing Duke Energy, one of the nation’s largest utility companies, of deceiving the public about climate change and contributing to the warming of the planet.
The mayor and City Council of Carrboro, a town next to Chapel Hill, said in its lawsuit in North Carolina Superior Court that Duke Energy had known for decades that its operations contributed to the climate crisis but failed to curb its emissions of greenhouse gases. Instead, the lawsuit argues, the company increased its use of fossil fuels, often in disadvantaged communities.
“Historically underserved and marginalized communities are facing disproportionate impacts and health risks that are associated with climate change,” said Barbara Foushee, Carrboro’s mayor. “This was not an easy decision to make, but I believe that we must be courageous as we call out these injustices and seek change and accountability.”
The town said Duke Energy’s actions were costing its residents millions of dollars because climate change had increased damage from floods and other extreme weather. Duke Energy, which is based in Charlotte, N.C., provides electricity to more than eight million customers in six states and natural gas to almost two million customers in five states. The company is one of the biggest operators of coal and natural gas power plants in the United States.
Duke said on Wednesday that it was working on a response.
Allegations that energy companies covered up what they knew about climate change and misled the public have formed the basis of more than two dozen lawsuits by state and local governments across the United States since 2017. The claims include violations of consumer protection, public nuisance and fraud laws.
None have gone to trial yet. Many have been tied up in disputes about whether they should be adjudicated under state or federal law. State laws are seen as generally more favorable to plaintiffs.
Republican states and oil companies have asked the U.S. Supreme Court to rule that the cases fall under federal law and to block them from proceeding. They argue that the lawsuits amount to an attempt to make energy policy through litigation. The Supreme Court has asked the U.S. solicitor general for input on two related cases, a sign that the justices could decide to hear them.
One previous case against Exxon Mobil brought by the attorney general of New York contended that the oil company had misled investors about what climate change regulation would cost the company. That suit, which was narrowly focused on investor fraud, failed in a federal court in 2019.
Duke Energy is facing the case as electric utilities assume a leading role in the transition to cleaner forms of energy, including by powering heat pumps and electric cars. Many utilities, including Duke, have made commitments to increase their use of forms of energy that do not emit greenhouse gases.
But some energy experts are concerned that the utility industry’s efforts to reduce its emissions could falter as it works to provide a lot more power to computer data centers for artificial intelligence services. In addition, President-elect Donald J. Trump has called climate change a “hoax” and said he would do away with many of President Biden’s policies designed to address climate change.
Duke Energy has been rated the nation’s third-biggest emitter of gases responsible for climate change on the Greenhouse 100 Polluters Index, by the Political Economy Research Institute at the University of Massachusetts Amherst.
In its lawsuit, Carrboro claims that Duke Energy and its predecessor companies knew the risks of climate change for more than 50 years, first learning about its potential effects during an industry conference in 1968.
During that meeting, the lawsuit claims, a leading scientist explained to industry executives that by 2000, higher use of fossil fuels would raise the amount of carbon dioxide in the atmosphere by 25 percent. According to the lawsuit, the scientist said this increase “might, therefore, produce major consequences on the climate — possibly even triggering catastrophic effects.”
Rather than act on the warning, the lawsuit said, Duke engaged in a conspiracy to conceal the causes and consequences of climate change, delaying the transition away from fossil fuels. In a 2004 annual report, one of the utility’s acquisitions, Cinergy, claimed that there was “an unresolved but robust debate on the ‘science’ of global warming,” according to the lawsuit.
Carrboro and its supporters, which include NC WARN, an environmental group that represents consumers on utility matters, contend that Duke Energy’s knowledge and behavior highlight deliberate efforts by the company to avoid the transition to a clean energy future.
“This lawsuit exposes Duke Energy executives as using the tobacco scandal playbook,” said Jim Warren, executive director NC WARN. “They’re making the global climate crisis worse despite widespread and accelerating misery.”
The lawsuit asks Duke to compensate Carrboro and its residents for the extra costs imposed on them by the company’s actions. The suit does not specify a dollar amount.
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