|
Our position is: Cinergy is wise to participate in fashioning greenhouse gas regulations instead of fighting them.
Although one of the state's major utilities stopped well short of endorsing specific legislation to reduce greenhouse gases, it did recognize the inevitability of such mandates and urged an approach that involves market-based caps involving emissions trading credits.
That puts Cinergy Corp. out in front of the Bush administration, which has resisted everything except voluntary reductions by utilities.
In a report to shareholders, Cinergy said it believes that a reasonable long-term reduction strategy can be created.
John Stowell, who handles environmental strategies for Cinergy, said it is likely Congress will eventually regulate greenhouse gas emissions, which many scientists believe contribute to global warming. A proposal by Sens. John McCain, R-Ariz., and Joe Lieberman, D-Conn., would allow companies and utilities to trade emissions credits. Stowell said the McCain-Lieberman proposal needs to be improved by capping initial prices for the carbon dioxide allowances to prevent disruption to the economy.
Although critics have suggested that the McCain-Lieberman proposal could lead to rate increases of perhaps 73 percent in Indiana, along with massive job losses, Stowell said an emissions trading program could be feasible if properly fashioned.
Cinergy has taken the position it is better to shape inevitable regulations than fight them. All utilities would benefit by knowing the environmental rules they have to play by. The Bush administration needs to take a much stronger lead on the issue.