Washington (Platts)--12Jul2007

The newest bill to reduce greenhouse gas emissions in the US would implement
an economy-wide cap-and-trade program to reduce emissions to 1990 levels by
2030.

The measure, introduced Wednesday by senators Jeff Bingaman, Democrat-New
Mexico, and Arlen Specter, Republican-Pennsylvania, is supported by the
nation's largest coal-burning and nuclear electric utilities and by labor
unions. But other bills to accomplish the same thing, including some
bipartisan efforts, are also on the Senate's work list. They are all in the
early stages of consideration. 

The Low Carbon Economy Act of 2007 was hailed by utility leaders as a
"balanced" and "sensible" approach to dealing with global warming. Utility
CEOs supporting the bill included Mike Morris of American Electric Power, Jim
Rogers of Duke Energy, Jeff Sterba of PNM Resources, John Rowe of Exelon, John
Bryson of Edison International and James Miller of PPL. David Crane, CEO of
merchant generator NRG Energy, also joined the group at a Washington news
conference.

Bingaman said he recognizes getting climate-change legislation, even a bill
this moderate, through Congress and to the president would be a "heavy lift,"
but he believes there is growing consensus in both parties to move legislation
to address global warming soon.

The White House, which has opposed mandatory limits on GHG emissions, has not
weighed in on the bill.

Rowe said the Bingaman-Specter bill has his "unequivocal support." Sterba said
the measure gives the industry the certainty it needs to make long-term
investments and Rogers praised its provisions for developing technologies to
control carbon dioxide that would allow coal-fired utilities to operate
"without extreme hardship." 

"We'll work hard to see if this gets passed," said Morris, who leads the
biggest coal-burning utility in the US. 

-- Cathy Cash, cathy_cash@platts.com