Standard & Poor's Ratings Services said the cost of reducing carbon dioxide emissions could impact the credit quality of US electric utilities.
However, the ratings agency added it could be many years before the full impact of carbon controls is realised, due to ongoing regulatory and legislative debates over carbon regulation.
Depending on their magnitude, carbon-related operating costs could erode financial margins, which could then impair utility credit ratings, S&P said.
The ratings agency added that preserving credit quality in the face of higher costs will hinge on the responses adopted by governing bodies that set rates for public power and electric cooperative utilities.
