Dynegy to disclose climate change risks
NEW YORK STATE - Power producer Dynegy Inc will disclose its financial risks from global climate change under an agreement with the state of New York, former Vice President Al Gore and New York Attorney General Andrew Cuomo said.
Dynegy will provide the information in its annual 10-K filing to the U.S. Securities and Exchange Commission under the agreement, which came after Cuomo's office investigated whether energy companies had properly disclosed their risk of climate change.
Cuomo, who had reached a similar agreement with Xcel Energy, said it was imperative that companies which produce carbon from their operations let investors know the risks they face.
"You have to disclose the facts to the public. It's not just good public policy, it's the law," he told a press conference.
The Houston-based company, which owns power plants in 13 states, is one of the United States' largest consumers of coal, the fuel that is the main target of environmental groups.
Coal-fired power plants are among the top emitters of carbon dioxide, the greenhouse gas that is blamed for contributing to global warming.
The Bush Administration has shunned global treaties that seek to curtail emissions of greenhouse gases, although presidential candidates Barack Obama and John McCain have both backed measures that would reduce their output.
In its 2007 10-K filing, Dynegy detailed its carbon dioxide output by region, cited U.S. Supreme Court rulings that called for regulation of carbon and said rising costs of emissions would affect its business.
"We will continue to provide appropriate information to investors about climate change risk," Dynegy spokesman David Byford said.
Under the agreement, Dynegy will disclose an analysis on how its business will be affected by probable future climate change regulations, current climate change-related litigation and the physical impacts of climate change.
The company will also disclose its strategies for reducing or managing those emissions and how climate change is incorporated in its corporate governance activities, including its effect on officer compensation.
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