Xcel Energy, one of the largest U.S. utilities, has agreed to disclose information about its carbon emissions. The utility company made an agreement with Andrew Cuomo, the attorney general of New York, to release an in-depth analysis on the risks (both physical and financial) that the company faces due to climate change. Those risks include potential financial problems from litigation and regulation, both present and future.

Dick Kelly, Xcel's chairman, issued a statement on the agreement: "We previously provided detailed information concerning the expected impact of climate change and greenhouse gas emissions regulations on our operations, and under this agreement we will make even more detailed disclosures."

The agreement was the result of a subpoena Cuomo issued based on a 1921 law that gives the attorney general's office access to corporate financial records needed to fight fraud. However, Xcel has not admitted or denied any wrongdoing in conjunction with the agreement. The agreement is binding and enforceable, requiring Xcel to provide details of the risks it faces from climate change in its Form 10-K fillings, the annual report a company is required to provide its investors by the Securities and Exchange Commission. Disclosures will include Xcel's current carbon emissions, projected increases in those emissions, strategies for offsetting or limiting its emissions and corporate governance actions related to climate change.

Cuomo used the same law, commonly known as the Martin Act, to request records from AES Corp., Dominion Resources, Dynegy and Peabody Energy — those investigations are still ongoing. All five investigations began in 2007.

Cuomo stated, “This landmark agreement sets a new industry-wide precedent that will force companies to disclose the true financial risks that climate change poses to their investors. Coal-fired power plants can significantly contribute to global warming and investors have the right to know all the associated risks. I commend Xcel Energy for working with my office to establish a standard that will improve our environment and our marketplace over the long-term."

Xcel, despite cutting its emissions by more than 18 million tons over the past five years, remains one of the largest utility polluters in the U.S. The company operates in eight states and relies on coal for almost half of the power it sells. Xcel bills itself, however, as the largest utility provider of wind power in the U.S. — concurrently with plans to build a new coal-fired power plant in Colorado.

Image — natjoschock