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Utilities May Profit From Ruling

Some corporations may profit off tighter greenhouse gas regulations

By Colleen Barry,  Newser Staff

Posted Apr 3, 2007 8:31 AM CDT

(Newser) – Some utility  companies may actually benefit financially from the Supreme Court ruling forcing the EPA to crack down on greenhouse gas emissions, the Wall Street Journal reports.  While it will cost them millions in the short-term to meet new requirements, utilities in government-regulated markets—mostly in the Southeast, Great Plains, and West—can pass those costs on to consumers at a profit.

That's because they're allowed by law to collect a profit of 10% to 13% on any new environmental spending. But polluters in deregulated markets won't be so lucky: They'll probably be forced to eat much of the cost of refitting their factories unless the market price rises.

The Supreme Court decided against energy companies in two major decisions recently.
The Supreme Court decided against energy companies in two major decisions recently.   (Getty Images)
Smokestacks spit pollution into the air.
Smokestacks spit pollution into the air.   (Getty Images)
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