Acid Rain: The Southern Co. (B)

Case Solution

Forest L. Reinhardt
Harvard Business School ()

In addition to the expected cost minimization issues discussed in Acid Rain: The Southern Co. (A), issues related to regulatory uncertainty are critical to the company’s Clean Air Act compliance strategy. Regulatory uncertainty affects and is influenced by uncertainties about the price of certificates for the emission of sulfur dioxide. Provides additional information on the regulatory risks and uncertainties faced by Southern Co .; allows the study of the relationships between federal environmental regulation and the regulation of returns at the state level.

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