GE’s Hudson River PCB Site is Leaking Toxic Chemicals

It has been reported that General Electric’s (GE) Phase I cleanup of the Hudson River PCB site is leaking toxic material. As I recall, GE always wanted to cap the site since it would cost less and be more effective than EPA’s chosen remedy to dredge the site. According to EPA’s website, at the commencement of 2009, GE has reimbursed the government in the neighborhood of $37 million. If GE negotiates with EPA not to commence the phase II dredging plan, GE would be required to pay an estimated $43 million. Granted GE at the end of 2009 had a high stockholder equity ($117,291 million), therefore, a material impact would be 4% of that figure or $4,692 million. However, no one knows for certain if a material impact has occurred since most likely no one has added all the percentages of wastes that GE disposed of over the years at all superfund sites around the country in relationship to the estimated EPA balance owing for the selected cleanup costs. While GE’s annual report mentions that the company is allocating $.4 billion for remedial clean ups for the next two years, in many cases these liabilities extend over 30 years. Extended liabilities to balance sheets should be done for all companies (not just GE) to create transparency and permit stockholders to be aware of these long term off balance sheet liabilities.