William Cavanaugh III is an American businessman and philanthropist with a long history of leadership positions in the energy production and real estate industries.

Born in New Orleans, Cavanaugh served in the United States Navy for eight years before jumping into work in the energy sector.

He served in leadership roles at several energy companies and was most recently on the board of directors of Duke Realty, which was an American real estate investment trust (REIT) based in Indianapolis.

Cavanaugh has also been a key player in fighting deregulation in the energy industry and in the safe exploration of nuclear energy.

Early Life and Education

William Cavanaugh III was born in New Orleans, Louisiana, in 1939. As a young man, he enrolled at Tulane University in New Orleans, where he studied mechanical engineering. He received his undergraduate degree in 1961.

Upon graduation, Cavanaugh enlisted in the U.S. Navy, where he served for the next eight years. He learned important lessons about nuclear power generation through the Navy’s nuclear submarine program. He received an honorable discharge from the Navy in 1969.

Cavanaugh attended the Kidder-Peabody Utility Corporate Finance program in 1983 and Harvard University’s advanced management program in 1991. As a working student, these designations helped prepare him for senior management roles in production within the energy sector.

Notable Accomplishments

After leaving the Navy, Cavanaugh began his career at Entergy in New Orleans. There, he served in executive leadership roles at three of the firm’s electric utility subsidiaries:

• Arkansas Power & Light
• Louisiana Power & Light
• Mississippi Power & Light 
  

Carolina Power & Light

He joined Carolina Power & Light Company as the company's president and chief operating officer (COO) in 1992. Seven years later, he rose to the role of chairman and chief executive officer (CEO). As the company's leader, he was a key player in the firm's acquisition of Florida Progress, which CP&L bought for $54 a share.

The combined company adopted a new name, Progress Energy, and became what was at the time the ninth-largest energy producer in the United States. Under Cavanaugh’s leadership, the firm grew to become a Fortune 500 company with a new headquarters in Raleigh, North Carolina with approximately $8 billion in annual revenues. Cavanaugh retired from the company in 2004.

World Association of Nuclear Operators

Cavanaugh then served as chair of the World Association of Nuclear Operators (WANO). WANO is an international association of nuclear power plant operators dedicated to promoting the safe exploitation of nuclear energy. The title of chairman is now held by Tom Mitchell, former president and CEO of Ontario Power Generation in Canada.

Special Recognition

Cavanaugh was elected to the membership of the National Academy of Engineering in 2001 for his efforts to enhance electricity generated from nuclear power "by establishing and achieving exemplary levels of performance.”

He also had conferred on him the William S. Lee Award for Industry Leadership from the Nuclear Energy Institute and the American Nuclear Society's Walter H. Zinn Award.

Legacy

Opposing the Deregulation of the Energy Industry

Congress passed laws between 1989 and 1994 that allowed the purchase and sale of power on a wholesale basis and for energy to be traded. Cavanaugh notably resisted the resulting trend to shift operations into energy trading. Rather than jump in and expand the company in this way, he remained cautious. He focused on Progress's primary business and helped keep it afloat.

This is in contrast to other players in the energy sector at the time, such as Enron Corporation, the leader in this movement. Enron was later disgraced after it was accused of lying to shareholders and manipulating energy markets. Its corporate leaders were prosecuted.

Cavanaugh's skepticism led him to lobby against the deregulation of the energy industry. In the end, Cavanaugh was vindicated, and his reputation as a CEO with integrity grew.

Personal Life

Cavanaugh has been an active philanthropist, whether donating to charities such as the American Cancer Society and the United Way or investing in communities.

He is married to Alyce Lee Cocchiara. The couple has four children, Kyle, Craig, Chris, and Connie.

The Bottom Line

The average person may not know of William Cavanaugh III. But those in the energy sector may be familiar with him. Cavanaugh worked in the public energy sector for decades, heading up Carolina Power & Light Company, which later became Progress Energy. He was one of the key voices against the deregulation of the energy sector. At a time when others were trading and sharing energy and expanding, he bucked the trend and continued to manage the profitability of Progress by tending to the company's primary business.