U.S. Air Regulation Reversals Are Costly for Industry

The dramatic reversals in U.S. air regulation, reported and discussed two weeks ago, are proving nettlesome not just for environmentalists and for some of the parties that had challenged rules in court, but for the energy industry generally. John Dizard reports this week in Londonâ''s Financial Times that utilities had spent upwards of $75 billion for SO2 and NOx retrofits to meet the rules that now have been overturned. Dizard quotes a source at the Washington law firm Bracewell & Giuliani saying that just the lost value of SO2 emissions allowances could come to $15-20 billion. PPL, a Pittsburgh utility, has announced losses associated with defunct NOx allowances could come to almost $100 million.

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