Appeals Court Reinstates Carbon Emissions Suit Vs Utilities

A U.S. appeals court on Monday reinstated global warming lawsuits brought by eight states, New York City and three land trusts against several large utility companies, seeking to limit their carbon-dioxide emissions.

In an order Monday, the Second Circuit Court of Appeals vacated a district judge's 2005 ruling tossing out the cases, saying the lower court erred in dismissing the complaints.

The utilities are American Electric Power Co. (AEP), Southern Co. (SO), Xcel Energy Inc. (XEL), the federal government-owned Tennessee Valley Authority and Cinergy Corp., which was acquired by Duke Energy Corp. (DUK) in 2006.

One of lawsuits reinstated was brought by New York, Connecticut, California, Iowa, New Jersey, Rhode Island, Vermont, Wisconsin and New York City. The other was brought by land trusts Open Space Institute Inc., Open Space Conservancy Inc. and the Audubon Society of New Hampshire.

U.S. District Judge Loretta Preska in Manhattan dismissed the cases in 2005, saying the question of whether carbon-dioxide emissions should be reduced laid with Congress, not the courts.

The cases were remanded to Judge Preska for further proceedings.

-By Chad Bray, Dow Jones Newswires; 212-227-2017; [e-mail]