JCC

Cap-and-Trade Bill Moves Through Congress: Time to Sell Electric Utilities?

Historically with each pollution related law, analysts have predicted increased costs to business. In fact, over a relatively short time the opposite has occurred. Alternative and improved methods have been implemented that ended up providing for lower overall costs.

Cap-And-Trade could well end up the same. The costs will yield innovation, which will decrease CO2 emissions. Furthermore, if you look at history, it is likely that this innovation will result in decreased costs to business.

So some electric utilities will make the necessary changes and end up being very profitable. Some will stick their heads in the sand and pay the piper.