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21 August 2006 -- According to a report from Reuters, a federal court ruled Thursday that Duke Energy, which recently acquired Cinergy, must install pollution-reduction equipment at Cinergy's aging coal-powered electric plants if it expands them. This is a victory to the U.S. government in a case that could shape an upcoming Supreme Court ruling the report says.
The three-member 7th Circuit Court of Appeals in Chicago ruled that Duke must install emission curbs at its coal-powered plants in the Midwest if it expands them to prolong their operating lives.
The Environmental Protection Agency (EPA) sued the utility to force it to apply for an expansion permit, which would trigger emission-reduction measures.
Duke Energy, along with many other utilities, did not believe that expanding an existing plant should trigger the New Source Review section of the Clean Air Act. Duke argued that it could expand its plants without triggering the regulations as long as the modifications did not increase hourly emissions.
The court, however, disagreed and said Duke's interpretation could "open a loophole that would allow pollution to soar unregulated" because annual emissions could rise even as hourly rates stayed level.
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