Allegheny Energy, Inc. (AYE)

Three major investment banks recently said they believe the US government will cap CO2 emissions from power plants in the next few years. This forecast about what the government will do years from now has an immediate impact on the present day - electric utilities borrow money from these same banks in order to build new power plants, and the banks, worried the utilities won't be able to pay back the loans if emissions caps are put in place, are requiring borrowers to demonstrate they will be able to make money under a system of CO2 caps - or face higher borrowing costs if they cannot do so.

Of all the electric utilities, Allegheny energy (NYSE:AYE) has the most to lose. The company has steadfastly dismissed the threat posed by alternative energy, and uses less nuclear energy (zero percent) than any other electric utility. Eighty percent of its power still comes from coal.