Posted on 10/20/2012 12:06:35 PM PDT by John W
Duke Energy Corp. is on the hook for $7.9 million after Charlotte fundraisers were unable to raise enough money for Septembers Democratic National Convention.
The Charlotte in 2012 Host Committee fell millions short of its $36.65 million fundraising goal for the DNC, despite numerous statements that the efforts were right on track."
According to its filing Wednesday with the Federal Elections Commission, the Charlotte in 2012 Host Committee raised $24.14 million and borrowed $10.9 million. Taking into account only contributions received to defray convention expenses, the Charlotte in 2012 host committee missed its fundraising target by $12.51 million.
Instead, the host committee was forced to dip into a $10 million credit line with Fifth Third Bank that was backed by a guarantee from Duke Energy.
Details on the fundraising shortfalls were filed today with the Federal Election Commission. That includes a report for its New American City fund, which generated $20.06 million for the Democratic National Convention by sidestepping strict rules on collecting contributions. Supplemental forms were also filed that lists 20 companies that provided goods and services during Septembers Democratic National Convention.
Duke Energy released a statement today that it will work with convention organizers to make sure the debt is repaid by the credit line agreements due date of Feb. 28.
Duke Energy has not and will not use any utility customer funds to pay for any aspects of the convention, or events associated with the convention, the Charlotte-based electricity giant said Wednesday.
However, that statement doesnt rule out Duke covering the debt using funds from other sources. Consider: Utility-customer funds werent used for the DNC, as the company stated.
But the company (NYSE:DUKE) still supported the convention and its organizers with $5.7 million in cash and in-kind (non-cash) contributions to support the host committees programs to promote economic growth, Duke says.
That included temporary uptown office space and parking, plus $4 million in cash.
Duke was an early supporter of Charlottes efforts to win the convention. In 2010, the company said it would guarantee the $10 million line of credit to help the city secure hosting duties for the 2012 Democratic National Convention.
The purpose of the line of credit is to help the local host committee manage its cash flow during the convention fundraising process, Duke said today.
The Democratic National Convention Committee separate from the local host committee filed its third-quarter FEC report Monday detailing nearly $8 million spent during the three months surrounding DNC week in Charlotte. The DNC Committee listed $7.99 million in expenditures from June 1 to Sept. 30 in a 547-page report that included salaries, security, hospitality and transportation.
Susan Stabley covers growth, the environment and residential real estate for the Charlotte Business Jou
One thing Democrats know about is debt.
Seems as though there are financial issues surrounding the Obama campaign. That is usually the case with the losers.
The Dems sure are good at operating things in the RED. That word has a two-fold meaning.
Duke Energy is screwed. If I were a stock-holder...I’d be asking who approved this deal and why they had to get involved.
I’d also suggest to any city in the future....other than Vegas...it’d be best to stay out of the campaign convention business.
So Duke customers will be paying for this, one way or another. Eventually. Imagine your power bill going to pay for obamma and his thugs to have a party?
Can’t they hit up Bill Maher and other rich loud mouth liberals for some more money?????
Why is it that it’s okay for liberals to be wealthy, but not okay for Republicans/conservatives? Why is it bad that Romney is wealthy, and that his company succeeded in their investments???
Like Bidet - “Jobs, is a three letter word” - and 0bummer - “Made In The USA, is a three letter word - the dipsticks at DNC also have a ***math problem***.
No wonder we’re $16+ TRILLION in debt!
“The wicked borrow and do not repay, but the righteous give generously.” ——Psalm 37:21
WTF!???!??? What in hell is a regulated public utility service corporation doing guaranteeing the debts of a party political!????????????????
Whoever is running the regulatory show out there needs to take quick and effective action right away, NOW, to make dammmmed sure that the (captive) rate-payers do NOT wind up being charged one thin dime for this horrible violation of the public utility trust.
It is insufficient for the utility company to just say the public won’t be put on the hook for this. The governmental regulators need to (justify their positions and) step in right NOW to make SURE the public is not shafted with this debt!
(And a few utility executives should be charged and, it appears.. since the company is admitting what it did, convicted and put in jail, too.)
As they say ‘You lay down with the pigs, you come up smellin’ like garbage.
Hope you learned your lesson Duke.
OK, if it paid out of earnings, where exactly did those earnings come from?
Maybe the execs all pooled their own money to pay for the DNC?
What a bunch of malarkey. It all ultimately comes out of customer pockets. They have no other sources of funds.
Maybe this is what the BOA loan is about...robbing the bank to pay the utility. Next they'll rob GM to pay BOA.
Democrats = Grifters
After reading the article yesterday about BOA loaning the Dims several million, I made the comment that I was still waiting to hear about vendors that got stiffed by the DNC. Little did I realize it would be Duke Energy.
That’s gonna take a LOT of revolutions on the wind turbine to make that up.
Apparent typo. Could happen to anyone.
I already thought about that and I’m not happy. I hate knowing that I will help pay for the Fluke Fest.
I disagree, they have no clue about debt.
There's an easy answer for that, but it isn't very satisfying.
Liberals are always assumed to have good intentions and, therefore, are rightfully rewarded for their endeavors. Conservatives, on the other hand, extract unearned surplus value from the goods they sell to powerless consumers and must be condemned for it.
I know it's dumb, but, hey, we're talking about liberals.
Class action suit by the customers, lawsuits by the stockholders...WOW!
The CEO of Duke, Jim Rogers, is an attorney and major lib. He is pro green energy and is in the process of shutting down Duke’s coal plants. The “loan” to the DNC was announced by Rogers before the company’s 2012 shareholder meeting. At the meeting the small shareholders showed up in force and strongly spoke out at the meeting against the loan in the Q&A session.
Per the executives, if the Democrats don’t pay off the loan, any loss will be absorbed by the shareholders and not the ratepayers (i.e. customers). Utility rates are set by the state utility commission so any make good on the loan will be covered out of the “profit” the utilities commission allows the company to make.
Shareholders have already taken a $45 million haircut this year after the merger with Progress Energy. The CEO of Progress, Bill Johnson, was supposed to be the new Duke CEO and Rogers was going to be chairman. The arrangement lasted one day. Rogers fired Johnson less than 24 hours after the merger and the company paid out $45 in severance and other benefits.
Roger was on the short list for Secretary of Energy in the first Obama term. It is too bad for Duke shareholders and ratepayers Rogers didn’t get the job.
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