FirstEnergy GHG Reduction Goals 2011
|Filer||New York State Comptroller|
|Subject(s)||Climate Change; Greenhouse Gas Emissions|
|Resolved Clause Summary||Greenhouse gas emissions reduction goals|
|Status||Withdrawn; Company will address|
Many utilities have established goals for reduction of green house gasses (“GHG”) and other pollutants. Pollution reduction goals have been set in anticipation of additional regulation by the Environmental Protection Agency (“EPA”) and to mitigate the economc, public health and environmental consequences of these emissions.
In October 2006, a report authored by former chief economist of the World Bank, Sir Nicolas Stem, estimated that climate change will cost between 5% and 10% of global domestic product (“GDP”) if greenhouse gas emissions are not reduced, and that GHG‘s can be reduced at a cost of approximately 1% of global GDP per year.
In October 2009, a National Academy of Sciences report stated that the burning of coal to generate electricity in the U.S. causes about $62 billion a year in "hidden costs" for environmental damage, not including the costs for damage associated with GHG emissions.
The electric generating industry accounts carbon dioxide emissions than any other sector, including the transportation and industrial sectors. U. S. fossil fueled power plants account for nearly 40% of domestic carbon dioxide emissions.
On May 13, 2010, the EPA finalized regulations requiring many existing and new industrial facilities, including power plants, refineries and cement production facilities to obtain operating permits for emission of carbon dioxide and other green house gasses. These requirements are scheduled to take effect in the first half of 2011
Many utilities, including Xcel Energy, Calpine Corporation and Progress Energy are shutting down or replacing power plants, having determined that doing so is more cost~effectivet11an retrofitting the plants to comply with new U.S. EPA regulations. "
The Tennessee Valley Authority announced in August,2010, plans to idle 1000 MW of coal generating capacity over the next five years and add 1000 MW of gas and 1140 MW of nuclear generating capacity along with 1900 MW of energy efficiency and distributed renewable resources.
Some of the Company's electric industry peers who have set GHG emissions reduction targets include American Electric Power, Entergy, Duke Energy, Exelon, National Grid and Consolidated Edison. Those with GHG intensity targets include CMS Energy, PSEG, NiSource and Pinnacle West.
RESOLVED, shareholders request that the Company adopt quantitative goals for the reduction of greenhouse gas and other air emissions, including plans to retrofit or retire it's existing coal plants; and that the Company report to shareholders by September 30, 2011, on its plans to achieve this goal. Such a report will omit proprietary information and be prepared at reasonable cost.