Court Reinstates Climate Change Law Suit Against Utilities

In a landmark ruling, the federal court of appeals in New York on Monday reinstated a law suit against five of America’s largest utilities.

The law suit, filed by a group of states and environmental groups, seeks to have the utilities cut their emissions 3% annually for 10 years, according to an MSNBC report.

The Second Circuit Court of Appeals ruled that these electric power companies can be sued in federal court because their carbon dioxide emissions contribute to rising temperatures and a host of damaging impacts in other states, including heat waves, smog episodes, droughts and forest fires.

The suit was originally dismissed in 2005, when U.S. District Court Judge Loretta Preska ruled that it was a political issue for the legislative or executive branches of government to address.

However, Monday’s appealate court ruling overturned the 2005 decision, finding instead that federal courts are empowered to curb damaging carbon pollution unless and until the legislative and executive branches actually regulate that pollution, either under the existing Clean Air Act or the comprehensive new energy and climate legislation bending in Congress.

The utilities named in the suit are American Electric Power Co Inc (NYSE: AEP), Southern Co (NYSE: SO), Xcel Energy Inc (NYSE: XEL), Cinergy Corp and the Tennessee Valley Authority (NYSE: TVE).

"The best way to fight global warming is for the Senate to pass comprehensive clean energy and climate legislation. However, the court’s decision guarantees that if the Congress fails to do its job, or blocks EPA from doing its job, the biggest power companies will still be held accountable in the federal courts," said David Doniger, senior attorney and policy director for NRDC’s Climate Center.

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