A lawsuit has been brought against the Regional Greenhouse Gas Initiative, the nation’s first mandatory market-based effort to reduce carbon dioxide emissions from Northeastern power plants.
Indeck Energy Services Inc. is challenging New York state’s authority to join the 10-state pact, known as RGGI, without legislative approval. The lawsuit was first reported by the New York Times Green Inc. blog earlier this week.
The company says it will lose millions of dollars that other power generators won’t under the program, which creates a cost for emitting carbon dioxide. While most power plants will be able to eventually pass those carbon costs onto customers, Indeck says it will not able to do so at a natural gas plant it owns in Corinth, New York because they are locked in a long term fixed price contract. The company also says participating RGGI states needed an act of Congress to develop the compact.
Thanks to Planet Gore reader Matt S.