Local boosters are always involved in efforts to land big events in their home cities. So on one level, Duke Energy’s guarantee of a $10 million line of credit for the organising committee of the 2012 Democratic National Convention in Charlotte, North Carolina, is unsurprising. Such arrangements are, at least in part, what leads to a city like Charlotte winning the auction to host the Convention.
And as it happens, Duke Energy’s CEO, Jim Rogers, is heading up Charlotte’s fund-raising efforts for the Convention. In this role, Mr. Rogers is on the hook to raise $36.5 million to meet the city’s contractual obligations to the Democratic National Convention. He says his fund-raising team will get the job done.
On the other hand, the fact that Duke Energy’s shareholders and rate-payers might be on the hook for $10 million (in the event of a host committee default) seems sketchy. The fact that the Democratic National Committee would put itself in this position also seems sketchy (and stupid). All concerned are hoping that this is a one-day story, that gets lost in the coverage of Japan.
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