Case | HBS Case Collection | September 1992 (Revised October 1992)

Acid Rain: The Southern Co. (B)

by Forest L. Reinhardt

Abstract

In addition to the issues of expected cost minimization elucidated in Acid Rain: The Southern Co. (A), problems involving regulatory uncertainty are critical to the firm's Clean Air Act compliance strategy. The regulatory uncertainty affects, and is affected by, the uncertainties about the price of allowances to emit sulfur dioxide. Provides additional information on the regulatory risks and uncertainties confronting the Southern Co.; permits exploration of the relations between federal environmental regulation and state-level regulation of rates of return.

Keywords: Energy Generation; Business Strategy; Environmental Sustainability; Cost vs Benefits; Risk and Uncertainty; Strategic Planning; Investment Return; Government Legislation; Wastes and Waste Processing; Business and Government Relations; Utilities Industry; Energy Industry; United States;

Citation:

Reinhardt, Forest L. "Acid Rain: The Southern Co. (B)." Harvard Business School Case 793-040, September 1992. (Revised October 1992.)