November 21, 2005
Sierra Club shareholder resolution
Whereas, Great Plains Energy, by operating coal burning power plants, is emitting millions of tons of CO2 annually, which is a greenhouse gas, and
Whereas scientific evidence of global warming has become increasingly accepted, and,
Whereas public understanding of global warming has become increasingly heightened in recent years, and
Whereas public concern pertaining to global warming has been greatly increased by the severity of hurricanes Katrina and Rita, and
Whereas the CEO of Duke Energy Corporation, Paul Anderson, has publicly called for a mandatory national carbon tax in order to ensure that financial impacts are distributed appropriately as the nation take steps to reduce the carbon intensity of our economy, in his keynote speech to about 700 civic and business leaders at the Charlotte Business Journal's annual Power Breakfast April 7, 2005, and
Whereas the Public Utilities Commission of the State of California has issued a ruling requiring large electric utilities to explicitly account for the financial risk associated with greenhouse gas emissions by incorporating costs of between $8 and $25 per ton of CO2 emissions in their long range planning for electric generation capacity decisions to ensure that California will be fully appraised of the potential costs associated with carbon emissions, and
Whereas extensive legislation has been introduced at the state and federal level aimed at reducing emissions of CO2 from US corporations.
THEREFORE, THE SHAREHOLDERS RESOLVE that Great Plains shall prepare a financial analysis, at reasonable cost and omitting proprietary information, of the impact of a $15 tax per ton of CO2 emitted on projected Great Plains financial results for a period of 10 years after such a tax is effective.
This report should be made available to shareholders by July 15, 2006, and shall be included in the next Annual Report thereafter.
Discussion: We believe that incorporating a carbon tax estimate in the long range electric generation capacity planning of the company is in the financial interest of Great Plains Energy's shareholders, who will be well served by a rigorous analysis of the company's current and future financial exposure to enactment of a carbon tax. We also believe that Great Plains Energy must begin planning to mitigate the financial impacts of a carbon tax on the company. Contingency planning for a carbon tax is critical for Great Plains Energy's financial future, and full coverage of the carbon tax exposure should be required in the company's annual reports. Great Plains shareholders deserve no less. We urge you to vote FOR this resolution.