Disclosure, Management Practices, and Corporate Governance Relating to Climate Change Financial Risks (Updated)

Actions by the Attorney General of the State of New York in 2008 will affect how public companies disclose and address climate change financial risks. Since August 2008, the Attorney General has announced settlement agreements (the "Agreements") with two major public utility holding companies, Dynegy Inc. ("Dynegy") and Xcel Energy Inc. ("Xcel Energy") (collectively, the "Companies"), pursuant to which the Companies agreed to disclose specified, detailed information about the financial risks of climate change on their businesses and how they are addressing those financial risks in their annual reports on Form 10-K filed with the U.S. Securities and Exchange Commission (the "SEC") under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). As discussed more fully below, while the disclosures required under the Agreements about financial risks resulting from climate change are consistent with existing SEC disclosure requirements, the new, detailed disclosures required about the Companies' strategic analyses of climate change financial risks and emissions management are likely to affect both management practices and corporate governance at Dynegy, Xcel Energy, and other companies.

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