The Wave's About to Crash: U.S. Climate Change Policies

摘要

Climate change regulation in the U.S., discussed in this country for more than two decades and now being set in California and the Northeast, is gaining acceptance in the electric utility industry and is likely to be federally mandated in the next few years. The nature of the regulatory action is uncertain, but could have a profound impact on cash flows and power plant values. Utility planners are increasingly asking what the coming regulations will look like as they attempt to determine the best plan for new plants and environmental capital expenditures. Given the billions of dollars that these types of investments require, the stakes are enormous. As the wave of regulation approaches, the image of likely regulation is becoming clear. Current and proposed state regulations, proposed federal legislation, and the European Trading Scheme offer the best indication of future regulation.