October 28, 2008
Dynegy Agrees to Environmental Disclosures
Dynegy is the second company to negotiate a settlement with the Attorney General of New York, Cuomo, that includes a promise to include environmental disclosures in its Form 10-K filings (annual report). Cuomo issued subpoenas to four companies under a state securities act, the Martin Act, seeking information on whether the companies had adequately disclosed "increased financial, regulatory, and litigation risks" triggered by environment regulations. Xcel was the first to cave, negotiating a similar agreement in August. Al Gore announced the settlement historic. Dynegy, building and operating coal-fired electrical power plants was the second to cave. Dynegy will disclose all material financial and physical risks related to climate change and all material effects of climate change regulation. Dynegy also agreed to disclose an array of environmental data and plans for reducing environmental effects of its operations. Negotiations with AES, Dominion Resources and Peabody Energy are continuing -- expect them to cave as well.
The disclosures will, of course, facility strike suits under whatever is disclosed. Plaintiffs will allege disclosures are either inaccurate or incomplete. Federal judges, under the guise of disclosure regulation, will, in the end, regulate the energy policies of these companies.
October 28, 2008 | Permalink
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