Environmental performance and sustainability practices are becoming increasingly important to industry because investors are recognising that there is a strong correlation between environmental performance and financial performance. Potential financial risks in the electric utility sector related to environmental issues continue to increase because of factors such as exposure to new regulatory requirements, growing concern over global climate change, and increased customer demand for environmentally responsible products and services. This case study highlights how environmental management and sustainability practices were successfully integrated into the power generation operations of a California utility company to address these ongoing market challenges.