Detroit, Michigan-based DTE Energy Co. (DTE) disclosed in a regulatory filing that it is facing a civil suit regarding its compliance with federal environmental regulations.
At the request of the United States Environmental Protection Agency or EPA, a civil suit was filed against the company on August 5, 2010, by the United States Department of Justice in the U.S. District Court for the Eastern District of Michigan.
The lawsuit is related to EPA's June 2010 Notice of Violation/Finding of Violation or NOV/FOV and the outage work performed at Unit 2 of the Monroe Power Plant.
DTE has also received a NOV/FOV from the EPA in July 2009 alleging, among other things, that five of The Detroit Edison Company's power plants violated New Source Performance standards, Prevention of Significant Deterioration requirements, and Title V operating permit requirements under the Clean Air Act.
Among other relief, the EPA is requesting the court to require Detroit Edison to install and operate the best available control technology at Unit 2 of the Monroe Power Plant.
Further, the EPA is requesting the court to issue a preliminary injunction to require Detroit Edison to commence the process of receiving necessary permits for Monroe Unit 2 modification and offset the pollution from Monroe Unit 2 through emissions reductions from the fleet of coal-fired power plants until the new control equipment is operating.
DTE Energy noted that Detroit Edison may also be required to to install additional pollution control equipment, consider early retirement of facilities where control equipment is not economical, engage in supplemental environmental programs, and/or pay fines.
DTE Energy said it cannot predict the financial impact or outcome of this matter or the timing of its resolution of the issue.
DTE's closed Wednesday's trading session at $46.23, down 2.20% or $1.04 on a volume of 1.2 million shares. The company's stock further declined 1.15% in the extended hours trading.
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