A small town in North Carolina has taken a bold step, filing the first climate “deception” lawsuit against an electric utility in the United States.
In a civil lawsuit, the Town Council of Carrboro accuses Duke Energy, one of the largest power companies in the United States, of orchestrating a decades-long campaign of denialism and cover up over the dangers of fossil fuel emissions. The lawsuit claims Duke’s actions stalled the transition to clean energy and exacerbated the climate crisis.
Over the past decade, similar suits have been filed by states and communities against large oil companies and — in at least one instance — a gas utility. But Carrboro, N.C., is the first municipality to ever file such a suit against an electric utility.
“We’re a very bold group,” Carrboro Mayor Barbara Foushee told Floodlight. “And we know how urgent this climate crisis is.”
Duke Energy did not immediately respond to a request for comment about the lawsuit.
The suit, filed in Orange County, North Carolina, accuses Duke Energy of intentionally spreading false information about the negative effects of fossil fuels for decades, despite knowing since the late 1960s about planet-warming properties of carbon dioxide emissions. It claims the power company funded trade organizations and climate skeptic scientists who created doubts about the greenhouse effect and obstructed policy and public action on climate change.
“Duke misled the public concerning the causes and consequences of climate change and thereby materially slowed the transition away from fossil fuels and toward renewable energy. Duke’s deception campaign served to protect its fossil fuel-based business model.” the lawsuit reads.
It accuses the power company, which in 2019 was the third largest emitter of C02 in the United States, of falsely marketing itself as a leader in clean energy while continuing to rely heavily on fossil fuels.
Between 2005 and 2023, the company reported reducing its CO2 emissions from electricity generation by 44%. But in 2023, at least 45% of the electricity Duke produced was still generated by burning coal or methane gas.
“(Duke) was one of the ringleaders behind deceiving the public and municipalities and governments about the causes and consequences of manmade climate change,” said Raleigh attorney Matthew Quinn, who is representing the town.
Carrboro is a town of about 20,000 with an annual budget of $81 million, Foushee said. Quinn, the attorney, estimates the town will incur some $60 million in costs in adapting to climate change impacts, including repairs to roads, upgrades to stormwater systems and increased heating and cooling costs.
“Really, what this case is about is that Carrboro has been a victim of the climate deception campaign by Duke Energy, (and) as a result of Duke’s conduct, Carrboro has suffered a lot of damages and injustice,” Quinn said.
Quinn’s fees are being paid by NC Warn, a climate nonprofit, the mayor said.
“People that run local governments and others and people that run corporations, they all better get heavily serious about the climate crisis,” said Jim Warren, executive director of NC Warn. “It’s already harming so many across this state.”
Although this is the first climate deception lawsuit ever filed against an electric utility, it is not the first time that electric utilities have found themselves in legal trouble for the climate warming pollution their power plants spew as they burn fossil fuels to generate electricity.
In 2004, electric companies faced federal litigation brought by eight U.S. states, New York City and several land trusts seeking to cap the companies’ CO2 emissions. The U.S. Supreme Court unanimously ruled against the plaintiffs.
Floodlight is a nonprofit newsroom that investigates the powerful interests stalling climate action.
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