A group representing the public power industry is refuting claims made by New York City Comptroller William Thompson Jr. in his letter asking the Treasury Department to reconsider its policy allowing tax-exempt financing of coal-fired power plants.

Thompson sent a letter to the Treasury June 6 urging officials to review the "financial and environmental risks" associated with the use of tax-exempt bonds to finance coal-fired plants. Regulatory uncertainty on carbon emissions and "skyrocketing increase of construction costs" are among the factors making coal-fired plants poor candidates for tax-exempt financing, he said.

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