Boston, MA 04/30/2014 (wallstreetpr) – Cleco Corporation (NYSE:CNL) seeks to recover about $110 million from its customers in relation to pollution equipment upgrades. The company wants to collect the money from its customers across Louisiana.
In efforts to reduce pollution at several of its coal-fired power facilities in Louisiana, Cleco Corporation (NYSE:CNL) decided to install pollution control equipment, and it intends to pass over the cost of the installation to the customers. However, the company could face opposition to its move to adjust electricity costs. Talks are ongoing about whether permission should be granted to the company to increase electricity cost to its Louisiana customers.
However, according to some environmentalists, the pollution control measures adopted by the company are shortsighted and might lead to higher bills for the customers in the future. The environmentalists have shown intend to block a bid to increase electricity costs and instead blame the company for choosing a pollution control measure that will be overtaken by event, therefore, resulting in more future costs.
Reducing impact from coal
In resorting to install pollution control equipment at its coal-fired plants, Cleco seeks to comply with the new environmental rules, otherwise known as Mercury and Air Toxics Standards (MATS). The rules will come into force in 2015 and will make it mandatory for energy companies to reduce environmental impact related to heavy and old coal power plants. However, Cleco can be seen trying to adopt the new regulations ahead of time, perhaps to avoid inconvenience that might arise as everyone else runs to comply with the new environmental measures.
Missing the point
While Cleco Corporation (NYSE:CNL) works to comply with MATS, its decision to reinvest in coal power generation that is already receiving widespread condemnation might not be the best decision in the long-run, according to experts. The company had the option to shifting to natural gas electricity plants or even solar and wind that are gaining widespread adoption in the energy sector.
