WASHINGTON (Sputnik) — The decision by the US Supreme Court to temporarily block implementing the regulations of the Clean Power Plan (CPP), which was introduced by President Barack Obama in August, benefits power generators and coal-dominant utilities, the rating agency Fitch said in a press release on Wednesday.
"We continue to believe that any delay in implementation will be positive for coal-dominant utilities and power generators," the press release stated.
On Tuesday, the US Supreme Court voted 5-4 to temporarily block carbon pollution regulations mandated by the Clean Power Plan pending the outcome of litigation that challenges the law.
In October, a group of 23 US states filed a lawsuit against the plan, arguing that the rules were illegal and would damage economic interests of the states and their residents.
Fitch noted that the Supreme Court’s ruling to block carbon pollution regulations creates uncertainty for the electricity sector.
"The CPP, which targets cutting CO2 emissions by 32 percent by 2030 from 2005 levels, had already begun to influence the business strategies and capital expenditures across the US power sector," the press release stated.
It is unclear how the industry participants would react to the delay induced by the stay, it added.
