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)

I DID IT: A dying inmate is having a hard time convincing the right people he committed a Raleigh murder. Craig Taylor says he, and not Greg Taylor (no relation) killed a woman. Greg Taylor's case recently went before the Innocence Inquiry Commission, which found reason to believe Greg Taylor shouldn't be locked up, partly because Craig Taylor knew specific details about the murder.

But Craig Taylor has confessed to other murders and officials say he is confessing to murders because he is dying. (N&O)

THIRD PARTIES GET ANOTHER SHOT: The state Court of Appeals on Tuesday upheld a state law that forces third political parties to collect tens of thousands of signatures to get on North Carolina's ballot. But the court's split decision means the case will likely be heard again. (AP)

A LITTLE BIT MORE: Duke Energy has pared down a rate hike request in a compromise with regulators. If the N.C. Utilities Commission agrees, a 7 percent hike would be phased in over two years. (Char-O)

Duke Energy is offering to pay for the wind turbines planned as part of the alternative-energy demonstration project in Pamlico Sound, but the state will let the company make the money back by passing along the cost to customers.

The state and the University of North Carolina are working on a contract that would have Duke Energy build up to 3 windmills, at a cost of about $12 million each, while allowing the university to study the operation, Lynn Bonner reports.

The budget bill sets out $300,000 in federal stimulus money for the study, and says the contract must be finished by Oct. 1.

The budget bill says the state Utilities Commission must establish an annual rider for the company to recover its costs when the company applies for it.

Ed Finley was reappointed chair of the North Carolina Utilities Commission Wednesday.

Gov. Beverly Perdue tapped Finley, who was named to the commission and as chair in 2007, to stay on the job. He was previously a partner at Hunton & Williams law firm in Raleigh.

The Utilities Commission sets the rates charged by the state’s electric, telephone, natural gas, water and sewer companies. The commission also investigates consumer complaints against those companies.

North Carolina's electricity providers say poop-to-power isn't ready for prime time.

Progress Energy, Duke Energy and other providers have asked state regulators to delay and modify a 2007 state law that requires them to generate a minimum amount of energy from pig or chicken waste. The law, designed to promote renewable energy and efficiency, requires utilities to begin getting some energy from pig and chicken litter by 2012.

Rep. David Lewis tried to sink confirmation of two appointees to the Utilities Commission on the grounds that the state can't afford to pay two $123,000 salaries.

"My objection is not to the outstanding, fine individuals who have been asked to be named," Lewis said of Bryan Beatty and Susan Rabon. It was that a quarter of a million dollars could hire a whole lot of teachers.

The pair were appointed by the commission — which regulates utilities and utility rates — by Gov. Mike Easley as his tenure came to a close. Beatty was Easley's Secretary of Crime Control and Public Safety. Rabon was a senior advisor to the governor. There are seven commissioners.

The Senate had previously confirmed the appointments. Lewis, a Dunn Republican, wanted to send the measure to a House appropriations committee, presumably to study whether the state could afford to pay the salaries.

That's when House members began to ask Lewis a series of questions that weren't really designed to gather information about Lewis' intentions.

"Do you realize they are already on board and already being paid?" asked Rep. Lorene Coats, a Salisbury Democrat.

Next was Rep. Bill Owens, an Elizabeth City Democrat, who asked Lewis if he knew the salaries were not paid from tax dollars but from utility fees.

The next question was form Speaker Joe Hackney: "Does the gentleman wish to withdraw his motion?"

Eventually, it was Lewis' turn to ask a question. He asked Hackney how he would go about withdrawing his motion.

Just say that, Hackney answered.

The commissioners were confirmed 112 to 5. Lewis voted for them.

Rep. David Lewis
Dunn Republican
Fourth Term

What two things would you cut in the state budget? Reduce the administrative positions in the Department of Public Instruction, look for fraud in the state health plan and eliminate two seats on the state utilities commission.

Are there any taxes you would be in favor of increasing? "I don't think we should raise any taxes until we can say" that we cut the inefficiencies and waste we could find.

— Mark Johnson 

Gov. Mike Easley made two last-minute appointments Friday.

Before leaving office, the former governor appointed Shannon Joseph and Bill Pittman, both of Raleigh, as Special Superior Court judges.

Joseph has been an administrative law judge with the state Office of Administrative Hearings since 2007. Previously, she was a partner at the Smith Moore law firm in Raleigh.

She is married to Superior Court Judge Ripley Rand, the son of Senate Majority Leader Tony Rand, a longtime Easley ally.

Pittman has been in private practice since 2001, focusing on government relations, utility law and commercial litigation. Previously, he served as associate general counsel to Gov. Jim Hunt and as a member of the state Utilities Commission.

"These new judges bring dignity and wisdom to the bench," Easley said in a statement. "Their vast experience and knowledge of the law will be an asset to our court system."

Gov. Mike Easley has nominated Susan Rabon to the N.C. Utilities Commission.

A Holly Springs resident, Rabon was a corporate lawyer in Wilmington before going to work as special counsel for the N.C. Department of Justice under then Attorney General Easley in 1993. She became chief of staff of the department in 1994.

Currently she works as senior assistant for administration in the governor's office.

Rabon graduated from N.C. State University in 1982 with a degree in political science and received her law degree from the University of Virginia in 1986. She clerked for N.C. Court of Appeals Judge Jack Cozort.

"Susan Rabon is an accomplished lawyer who has served our state with distinction and dedication," Easley said in a statement.  "Her integrity and knowledge of state government are unmatched. Her first priority has always been the needs and concerns of the people of North Carolina and I know she will take that same approach as a member of this commission."

The appointment will fill one of two openings on the board. Easley also nominated Crime Control Secretary Bryan Beatty today.

Both appointments will have to be confirmed by the legislature. 

Gov. Mike Easley has nominated Bryan Beatty to the N.C. Utilities Commission.

Beatty has served as secretary of the N.C. Department of Crime Control and Public Safety under Easley since 2001, overseeing the State Highway Patrol, the Division of Alcohol Law Enforcement and the Emergency Management Division, among other agencies.

"Bryan Beatty's dedication and integrity is unmatched in government," Easley said in a statement. "No matter what job he has held, he has always put the best interests of the state of North Carolina and her people first. I know he will continue to do so as a member of this commission."

Beatty had been angling to continue as secretary or in another position under Gov.-elect Beverly Perdue, but recently announced that he would instead leave for a new post.

The Utilities Commission regulates the rates and services of the state's public utilities, including telephone, electric, natural gas, wastewater, buses and ferryboats.

The governor appoints all seven members to eight-year terms, but they must be confirmed by the legislature. Other members appointed by Easley are Howard Lee, Bill Culpepper, Lorinzo Little Joyner, Sam Ervin IV, Robert Owens, and Chairman Edward Finley.

The appointment will fill one of two openings on the board.

Ervin will leave the board to join the N.C. Court of Appeals on Dec. 31. Jim Kerr left the board on Aug. 31.