US: September 17, 2007
NEW YORK - The state of New York has subpoenaed five energy companies as
part of an investigation into whether they properly disclosed the financial
risks of carbon dioxide emissions from new coal-fired power plants, The New
York Times reported on Sunday.
New York Attorney General Andrew Cuomo issued the subpoenas on Friday for
internal documents from power companies AES Corp, Dominion Resources, Dynegy
and Xcel Energy and coal producer Peabody Energy
In letters accompanying the subpoenas, the AG's office asked whether the
companies' investors had received adequate information about the possible
financial liabilities of the carbon dioxide emitted from the planned power
plants.
Carbon dioxide is a byproduct from the burning of fossil fuels such as coal
and is the main "greenhouse gas" blamed for global warming. Several states
and the US Congress are pushing for new measures to regulate carbon dioxide
emissions, which could raise costs for coal-fired power plants.
Currently about 100 new coal-fired power plants are planned to be built in
the United States. Coal-fired generation produces more than half the
country's electricity.
The subpoenas were issued under a state securities law widely used by
Cuomo's predecessor, current New York Governor Eliot Spitzer, to demand
documents from Wall Street
"The concept here is using the securities laws to investigate whether the
economic risks of these plants are being disclosed -- the economic risks
which are dovetailing with the environmental concerns," Cuomo told the
newspaper.
Cuomo's office was not immediately available to comment. Xcel Energy said in
an e-mailed statement that its environmental disclosures were adequate, and
that its coal-fired power plant in development in Colorado was being built
under an agreement with environmental groups the Sierra Club and
Environmental Defense.
AES and Dynegy declined to comment on the subpoenas, and Peabody and
Dominion were not immediately available.
(Reporting by Matt Daily)
REUTERS NEWS SERVICE
