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Charlotte DNC hosts owe lender at least $7.9 million after falling short in convention fundraising
Charlotte Business Journal ^ | October 17, 2012 | Susan Stabley

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 September’s 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 September’s 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 agreement’s 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 doesn’t rule out Duke covering the debt using funds from other sources. Consider: Utility-customer funds weren’t 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 committee’s 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 Charlotte’s 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


TOPICS: News/Current Events; Politics/Elections; US: North Carolina
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1 posted on 10/20/2012 12:06:41 PM PDT by John W
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To: John W

One thing Democrats know about is debt.


2 posted on 10/20/2012 12:10:21 PM PDT by fhayek
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To: John W

Seems as though there are financial issues surrounding the Obama campaign. That is usually the case with the losers.


3 posted on 10/20/2012 12:10:57 PM PDT by John W (Viva Cristo Rey!)
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To: fhayek

The Dems sure are good at operating things in the RED. That word has a two-fold meaning.


4 posted on 10/20/2012 12:12:40 PM PDT by Catsrus (Ma)
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To: John W

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.


5 posted on 10/20/2012 12:14:30 PM PDT by pepsionice
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To: John W

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?


6 posted on 10/20/2012 12:15:13 PM PDT by rawhide
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To: John W

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???


7 posted on 10/20/2012 12:16:23 PM PDT by Dilbert San Diego
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To: John W

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!


8 posted on 10/20/2012 12:17:02 PM PDT by Carriage Hill (The 0bummer Penguin & Bidet Joker: We played this country like a harp from hell.)
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To: John W

“The wicked borrow and do not repay, but the righteous give generously.” ——Psalm 37:21


9 posted on 10/20/2012 12:23:36 PM PDT by tflabo (Truth or Tyranny)
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To: John W

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.)


10 posted on 10/20/2012 12:25:12 PM PDT by faithhopecharity
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To: John W

As they say ‘You lay down with the pigs, you come up smellin’ like garbage.

Hope you learned your lesson Duke.


11 posted on 10/20/2012 12:27:29 PM PDT by MichaelCorleone ('We the People' can and will take this country back...starting today.)
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To: John W
Duke Energy says "utility-customer funds weren’t used for the DNC."

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

12 posted on 10/20/2012 1:13:24 PM PDT by ProtectOurFreedom
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To: John W

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.


13 posted on 10/20/2012 1:44:32 PM PDT by moovova (I work well with others, as long as they leave me alone.)
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To: John W
"....despite numerous statements that the efforts were “right on tcrack.""

Apparent typo. Could happen to anyone.

14 posted on 10/20/2012 1:56:53 PM PDT by Paladin2
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To: rawhide

I already thought about that and I’m not happy. I hate knowing that I will help pay for the Fluke Fest.


15 posted on 10/20/2012 2:09:06 PM PDT by Krodg
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To: fhayek
One thing Democrats know about is debt.

I disagree, they have no clue about debt.

16 posted on 10/20/2012 2:16:05 PM PDT by Traveler59 ( Truth is a journey, not a destination.)
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To: Dilbert San Diego
Why is it bad that Romney is wealthy, and that his company succeeded in their investments???

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.

17 posted on 10/20/2012 4:07:44 PM PDT by BfloGuy (Teach a man to fish and you lose a Democratic voter.)
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To: BfloGuy
Interesting FNC was just saying how much more money obama has on hand compared to Romney. Looks as if obama better help out with the convention debt.
18 posted on 10/20/2012 4:15:50 PM PDT by Irish Eyes
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To: ProtectOurFreedom
"It all ultimately comes out of customer pockets"

Class action suit by the customers, lawsuits by the stockholders...WOW!

The Kenyan must go.

19 posted on 10/20/2012 4:52:50 PM PDT by ex91B10 (We've tried the Soap Box,the Ballot Box and the Jury Box; ONE BOX LEFT!)
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To: ex91B10

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.


20 posted on 10/20/2012 10:07:26 PM PDT by Soul of the South
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