Is That A Bull's Eye On Your Back?

Utilities and power plant pollution are on track to replace tobacco companies and cigarette smokers as the next public enemy. In addition to bad public relations, the industry may also face a cascade of lawsuits that aim to curb second-hand pollution from fossil-fired generating plants. Alarmist you say? Yes, I know that the electricity business is not the largest source of key air pollutants in California. First place goes to the transportation sector. Still, the energy market creates 40 percent of the country's carbon dioxide pollution and about 23 percent of its nitrogen oxide emissions. That pollution does not respect state lines. About half the CO2 pollution created by power plants feeding California come from a small number of out-of-state coal plants. So, while Californians cough, neighboring states can point fingers at the mess we helped create that spills into our and others backyards. Coal plants not only contribute to global warming, they are the largest source of sulfur dioxide pollution, which creates acid rain. And, the extraction of coal creates a whole host of ills, including miners' deaths and illnesses. With all the swirling pollution and politics, power providers in California face heavy pressure to clean up or get swept up in nationwide litigation against dirty utilities. I also see utilities becoming the main target of venom for those clamoring for a cleaner and safer environment in and outside California. People are unlikely to equate their own SUV use and excess driving to the ills of the globe. At the same time, many will slam the power industry before reducing their energy consumption. The electricity market also makes a convenient bull's eye because pollution from generating units comes from a few stationary places. Unlike the millions of wheeled offenders, the polluting sources are easy to pinpoint. On top of that, the electricity sector, which sent out record high bills this winter, has, and will continue to be, a political target. Remember it's an election year in California-home of the notorious energy crisis. Politicians can advance their careers by highlighting criminal, questionable, and/or costly actions of energy companies. Some, like Senator Joe Dunn, have made a career mark out of it. Utilities also generate unwanted news when blackouts hit, air quality is wretched, accidents occur, and CEOs give themselves fat bonuses. So what can utilities in California do? Remember that actions speak far louder than words. Pronouncements and promises may make good PR but what really counts is where the green power hits the road-or the grid. Participating in the climate change registry and investing in untested and/or emerging alternative technology are good steps. But, larger and measurable actions are needed. That means entering contracts that produce a hefty amount of actual renewable megawatts sooner rather than later. Achieving performing, cost-effective green and clean investments also make a good offense to thwarting litigation and public opposition. Creating a bullet-proof offense also entails seizing other tangible clean power opportunities, including making significant gains in energy efficiency and demand side reduction. Utilities have to wave sayonara to investments in new coal-fired power plants. It is in utilities' economic interest to do so. That point is illustrated by a report issued this week. A coalition of investors and environmental groups, known as Ceres, assessed climate change strategies of the top 100 U.S. businesses, including 19 utilities. It gave utilities scores ranging from a high of 73 to a low of 23 points, out of a possible score of 100. Sempra was near the bottom. It was given a failing grade of 23 because of its proposed $2.5 billion investment in pulverized coal plants. The projects are expected to produce 2,000 very dirty megawatts. Those plants are could create 15 million tons of CO2 a year. While the coal-fueled power units may produce cheap power, saving money on the production end can be offset by higher costs-caused by litigation and political fallout. Coal power producers are already the object of political ire. For instance, gubernatorial candidate and state treasurer Phil Angelides used the Ceres report released March 21 to highlight utilities' political risks. "These findings-that a growing number of leading U.S. businesses are focusing on global warming-should be a wake up call to investors. We need to continue to press poor-performing companies to clean up their act." If the energy industry fails to clean up its act, its legal and financial vulnerability become more obvious when considering what else occurred the last several days. A federal appeals court at the end of last week struck down the U.S. Environmental Protection Agency's loose interpretation of exemptions under the Clear Air Act's New Source Review rules. The EPA attempted to allow power plants and other large industrial plant upgrades to be unaccompanied by pollution control technology. The California Attorney General, along with attorneys general from a number of other states, pressed their appeal to overturn a lower court's rejection of their nuisance claim aimed at stemming carbon dioxide emissions from the largest power plant polluters . A group of state attorneys general is also expected to soon file suit against the U.S. environmental agency for its power plant emission standards. In addition, there's the growing mountain of reports screaming for action on the greenhouse gas pollution front. The reports do more than highlight the writing on the wall. They can also be used as ammunition in lawsuits aimed at harmful power plant emissions. California's energy industry should consider the Chinese character for "chaos," which also means "opportunity." Utilities and private power owners can create a golden green opportunity and lead the polluting pack of U.S. power companies towards a cleaner future. Consider for a moment the National Academy of Sciences report last week. That government entity threw its support behind California's cutting edge emission regulations. It noted that California's standards "tend to spur the development of better emission-control technologies that benefit the rest of the nation." California power providers can also make a clean break from high polluting power from neighboring states by investing heavily in green power, conservation and existing and nascent low pollution energy technologies now. Forget waiting until the legislature or regulators pull the pieces together. Otherwise, hundreds of millions of dollars will go up in smoke defending against pollution suits. That's not only rotten PR, its bad news for investor relations and the bottom line. -Elizabeth McCarthy

Over 11K Stories!

| Independently Powered Energy News

Is That A Bull’s Eye On Your Back?

vdharadmin

Related Posts

Grid Operator Calls First Flex Alert of the Summer

Developers Would Pay Full Freight for Gas Line Hookups Under CPUC Proposal

Newsom Plans New Climate Package to Advance Carbon Emission Reductions

Alternate CPUC Utility Broadband Ground Rules Pitched