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THE NAKED REALITY OF POLITICS: Much of politics is about money. But it's rare to see it so plainly stated in black and white: "We didn't give them money because we liked them," sweepstakes operator William George told the Associated Press. "We just knew they were powerful people up in Raleigh and they could get done what we wanted to get done. You give them your money and they're supposed to do what they say they're going to do." (More on the story below.)

TODAY IN POLITICS: The current State Board of Elections meets for the final time at 9 a.m. today before Gov. Pat McCrory's new appointees take office Wednesday. The board had planned to launch a formal investigation into the gambling money -- received by the governor, top GOP legislative leaders and some Democrats. But board members backed off the idea now that they are lame ducks.

AT THE STATEHOUSE: A House committee will consider a bill to limit pre-K programs, in part to children under the federal poverty line. The full House meets at 2 p.m. and will consider a controversial firearms bill to allow guns in restaurants and bars that serve alcohol. The UNC system is also opposed because it allows guns in cars on college campuses. The Senate will meet at 2 p.m. On its calendar is a measure to require a parent to report a child missing after 24 hours -- it is named after Caylee Anthony. Gov. Pat McCrory is attending two feel-good events Tuesday in Charlotte, first a YMCA prayer breakfast and then a Wells Fargo "Reading Above Par" event.

***More on the sweepstakes money, arrests at the legislature and Jamie Hahn death investigation below in today's Dome Morning Memo -- the place for North Carolina political news and analysis.***

A Durham advocacy group has asked attorney general Roy Cooper to investigate whether Duke Energy and the N.C. Utilities Commission engaged in illegal “backroom deal-making” during talks to settle the Duke-Progress Energy merger probe.

Duke CEO Jim Rogers told the Observer this month that he negotiated the settlement terms, working with commission Chairman Edward Finley. The agreement, approved in December, ended an investigation into the firing of former Progress chief executive Bill Johnson to lead the combined companies.

N.C. WARN, a clean-energy group that has complained of unwarranted secrecy surrounding the merger, says the contact between Rogers and Finley apparently violated a state law against private communication between commissioners and the parties to a case.

UPDATED:A pair of advocacy groups that have long challenged power companies are urging Gov.-elect Pat McCrory to cede his constitutional powers to appoint regulators to the N.C. Utilities Commission.

N.C. WARN and the state branch of the AARP are concerned that McCrory, a former Duke Energy employee and ex-mayor of Charlotte, will stack the commission with utility-friendly appointees who will side with the Charlotte power company on rates and other key issues.

Their concern is that McCrory has vowed to name regulators who view their job as providing a customer service to the companies they regulate. That concern is exacerbated by the fact that the commission recently concluded a contentious 5-month investigation of Duke, which ended with a settlement that will restructure the company's executive ranks.

The man Gov.-elect Pat McCrory appointed to run the state's environmental agency isn't convinced about global warming. And he’s anxious to move the needle back from what he sees as over-regulation toward what he promises will be a middle ground that protects the environment without hindering economic growth. Meet John Skvarla here.

More political news:

--President Obama cuts short his vacation with automatic budget cuts looming.

--More than 300 shipyard workers in North Carolina could stop loading and unloading cargo ships as of midnight Saturday, the result of stalled contract talks that threaten to idle more than 14,500 dockworkers at 15 of the nation’s major shipping ports.

Future treatment for as many as 3,000 Wake County people with mental illness remains in limbo as the county works to complete a partnership with UNC Health Care and the Alliance managed care organization. Full story here.

More political headlines from the weekend:

--N.C. State University has reached an out-of-court settlement with former First Lady Mary Easley over her abrupt firing three years ago in a deal that more than doubled her state pension payment, according to interviews and documents.

Portions of about a dozen uptown roads will be closed to traffic and parking for at least four days during the week of the upcoming Democratic National Convention, under a security plan released early Wednesday by federal authorities. Read the full plan here and more coverage here.

Other political news:

--Hundreds of thousands of dollars worth of software from Microsoft. Computers, printers and tech support from Hewlett-Packard. Printing and supplies worth $150,000 from Xerox. And as much as $1 million worth of office space from Duke Energy. Those sorts of donations from companies to the Democratic National Convention, known as in-kind contributions, are taking on added importance this year because organizers are not accepting corporate cash to stage the convention.

GOP gubernatorial candidate Pat McCrory, who spent most of his career as a mid-level Duke Energy executive, said he thought the state Utilities Commission acting properly in looking into the controversy surrounding the merger of Duke Energy and Progress Energy.

“I think the Utiltiies Commisison is doing it's job and asking the questions relating to why they approved the merger," McCrory said. "I think it's very proper for them to ask and inquire about why and when decisions were made.''

“I do think the discussion need to get to two primary areas," McCrory said. "The primary purpose of the merger should be to make sure that North Carolina has low cost, reliable energy, now even more with the merger. The low cost energy is greatest economic development tool.''

“The discussion needs to be centered not around individuals but low cost, reliable and efficient energy for the next 50 years as a result of the merger. The second area as governor I would be asking is regarding jobs and primarily not just the jobs of staff, but the jobs of any potential power plants that could be built of expanded in North Carolina in the future.''

The N.C. Utilities Commission is eating crow after inadvertently posting a Greensboro moving company's confidential information online in violation of the commission's own privacy policy.

The commission's gaffe happens at a time that the commission has issued fines up to $1,000 against more than 50 moving companies -- and is threatening to yank their operating licenses -- for failing to follow commission rules.

Commission Chairman Edward Finley Jr. this week apologized to Ray Moving and Storage for posting company owners' social security numbers, birth dates and fingerprints from an FBI criminal background check. The moving company filed a complaint with the state Attorney General, demanding that the commission reprimand or fire the staffer responsible for the breach.

"It was an inadvertent failure to comply with our policies and rules," Finley acknowledged by phone this afternoon. "We handle all sorts of volumes of paper up here and mistakes happen."

State Rep. Lucy Allen is leaving the House for the N.C. Utilities Commission.

Gov. Bev Perdue announced in a news release that she has appointed Allen, a Louisburg Democrat, to the commission, which regulates utilities and the rates they charge. The appointment is effective April 12, according to a news release.

Allen was elected to the House in 2002 and was the mayor of Louisburg from 1985 to 2001. She is chairwoman of the House Environment and Natural Resources Committee. 

She has received numerous awards for her public service, including the 2009 Sunshine Award from Democracy North Carolina, and in 2007 the North Carolina Wildlife Federation’s Governor’s Award as Legislator of the Year, according to the news release.

She received her bachelor’s degree from Duke University and master’s degree from Meredith College.

The commission has seven members who serve eight-year terms. Appointments are made by the Governor, subject to confirmation by the legislature.

Allen's replacement in the House would be selected by a committee of Democrats from her district.

UPDATE: Allen will draw an annual salary of $123,000.

House Speaker Joe Hackney issued a statement about her appointment.

"Rep. Allen has been an outstanding member of the House of Representatives for the past seven years, and was particularly knowledgable about matters concerning the environment, transportation, economic development and local government. We will miss her insight, but wish her well in this new position."

UNCLE SAM'S BUYING: The state is using $140,000 in federal stimulus money to send 16 employees to child development workshops in San Diego while North Carolina has thousands of struggling families seeking subsidized care for their children. Critics say the money should be used to create jobs. (N&O)

LINE INSURANCE: PSNC Energy, the Triangle's natural gas utility, is raising questions with its newest line of business: insuring water lines and sewer lines against damage. The insurance coverage is not regulated by the N.C. Utilities Commission. (N&O)

TAX BREAK: The legislature estimates the state will forgo $1.4 million in tax revenue this weekend, and area retailers say they have high hopes based on how they did last year during tax holiday. (N&O)