Transcripts

One Power Company's Upgrades May Bring Pollution Problems

PAUL KANGAS: The U.S. Supreme Court today heard arguments on a case that could have a significant impact on business and the environment. The case involves Duke Energy and just how the company modified some of its old, coal-fired power plants almost two decades ago. Stephanie Dhue reports.

STEPHANIE DHUE, NIGHTLY BUSINESS REPORT CORRESPONDENT: When Duke Energy modernized its coal-fired power plants back in the late 1980s, it didn't put in any new pollution controls. Environmental groups that brought the case say the Clean Air Act required that it should have.

BLAN HOLMAN, ATTORNEY, SOUTHERN ENVIRONMENTAL LAW CENTER: The law requires that they clean these plants up when they do the modifications and that's what we want to see happen.

DHUE: But today, the energy company told the justices that regulators were inconsistent in interpreting that law. Duke argues that it did not have to spend billions of dollars in new pollution controls when it upgraded the plants because the hourly rate of emissions didn't increase.

CARTER PHILLIPS, COUNSEL FOR DUKE ENERGY: We did ask the regulators what to do. Every one of these projects was inspected by a North Carolina or South Carolina inspector. Every one of them was determined not to be subject to this statute. And that's why we're saying look, you can't come back 20 years later and say, it's a do-over and you owe us billions of dollars. That's just wrong.

DHUE: A ruling against Duke Energy could set the stage for power plants and industrial factories to be forced to spend billions on pollution controls. For example, New York State has similar suits against Synergy and American Electric Power.

PETER LEHNER, ENVIRONMENTAL PROTECTION BUREAU, NY ATTORNEY GENERAL: It will mean that these power plants which are often 40, 50 years old, extremely dirty, will have to put on the pollution control that any modern power plant will have to put on.

DHUE: The justices seemed sharply divided and were clearly grappling with complex environmental and legal issues. Observers don't expect a quick ruling in this case. A decision may not be handed down until late spring. Stephanie Dhue, NIGHTLY BUSINESS REPORT, Washington.