Government Energy Policy, Business and Technology

Why capital markets are continuing to finance utilities facing rising flood and other climate change impacts

Utility Dive: Many nuclear and fossil fuel power plants in the U.S. are intentionally sited near a body of water to provide access for various cooling processes while much electrical infrastructure remains above ground, according to the Energy Information Administration. The location of these assets makes them vulnerable to the intensifying impacts of the storms, hurricanes and flooding that have occurred with rising frequency over the past two decades, experts say.

On the Gulf Coast, for instance, companies need to expect what was previously a once-in-100 year severe rain event to now happen once every three years, per an analyst at global management consulting firm McKinsey & Company.

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