Three of the nation’s largest investment banks unveiled new standards Monday that require utilities seeking financing to prove that new coal-fired plants would make economic sense even with tough federal caps on carbon dioxide.
The Wall Street Journal reported that the move by Citigroup Inc., Morgan Stanley and JPMorgan Chase & Co. reflects Wall Street’s belief that Congress will approve “sometime in the next few years†some kind of cap-and-trade system on greenhouse gases. The banks will ask utilities wanting to build new coal plants to first explore energy efficiency and renewable energy options. The new financing rules could “hurt coal-dependent utilities that haven’t begun factoring a future price of C02 emissions into their planning. But they could help utilities that have.â€
The Holcomb plant debate is taking place against the backdrop of sweeping federal regulatory and financial changes that can’t be ignored.
