Energy company Dynegy Inc. recently entered into an agreement with the New York State Attorney General’s Office, in which it committed to disclose in its annual filings with the Securities and Exchange Commission certain material risks to the company associated with climate change. In particular, Dynegy agreed to analyze and, where material, disclose (i) financial risks associated with greenhouse gas (GHG) reduction regulations in the states and counties where it operates; (ii) climate change litigation, including matters in which the company is not directly involved; and (iii) the physical impact of climate change on the company’s operations. Dynegy also agreed to analyze strategies to manage these risks and the company’s GHG emissions. The N.Y. Attorney General had prompted this agreement in September 2007 when it subpoenaed Dynegy – as well as energy companies Xcel Energy Inc., AES Corporation, Dominion Resources Inc. and Peabody Energy Corp. – for information on whether they had adequately informed their investors about the risks associated with GHG emissions from their power plant projects. Dynegy was the second of these companies to reach a disclosure agreement with the Attorney General’s Office, Xcel Energy having reached a similar agreement in August 2008. A petition seeking national guidance from the SEC has been pending without action for over a year.
For further information, please see www.oag.state.ny.us/media_center/2008/oct/oct23a_08.htm.