N. Carolina utilities want to offer carbon offsets

By Jim Brumm

WILMINGTON, North Carolina (Reuters) - The North Carolina utilities owned by Duke Energy Corp and Progress Energy Inc have told the state Utilities Commission they intend to offer "carbon offsets" as part of their existing green power programs.

In a letter sent to the commission late Friday and released by Duke on Monday, the utilities said they are in discussions with NC GreenPower about expanding its existing programs to include the purchase of carbon credits.

NC GreenPower is a non-profit organization established in 2003 to improve the state's environment through voluntary contributions toward renewable energy -- "the first statewide green energy program in the nation supported by all the state's utilities," according to the group's Web site.

The site says 12,940 North Carolina electricity users have subscribed to its programs, funding the generation of 30.86 million kilowatt hours of electricity a year with renewable resources such as solar, wind, landfill methane and small hydro.

Duke spokeswoman Paige Sheehan said this is one type of carbon offset the utilities want to expand by providing power users a way to buy carbon credits.

NC GreenPower spokesman Jeff Brooks said the group is "very early in discussions" with the utilities.

Although the method of providing offsets has not been worked out, the program's target is the 41,000 pounds of carbon emissions the U.S. Environmental Protection Agency calculates the average household of two people is responsible for each year, Sheehan said.

The utilities told the commission the NC GreenPower Board is expected to act on the expansion at its late March meeting.

Once a program is in place, the utilities' letter said, Duke Energy Carolinas and Progress Energy Carolinas will revise their tariffs to include the carbon offset option.

(Editing by Dan Grebler)