EEI tells Wall Street electric industry to focus on policies that support progress, innovation
The electric power industry continues to make strides in reducing carbon, deploying renewables and in transportation electrification, Edison Electric Institute (EEI) President Thomas Kuhn told Wall Street on Wednesday.
Speaking at an annual electric power industry outlook briefing for investors, bankers and analysts, the head of the association that represents all U.S. investor-owned utilities said that in order to further a clean energy transformation in the United States, EEI is pushing for public policies that support progress and accelerate innovation. He cited the need to increase research and development funding and support technology to advance energy efficiency, energy storage, renewables and carbon-free next-generation nuclear.
“EEI’s member companies are transitioning to cleaner energy resources and reducing their carbon emissions; modernizing the energy grid and building smarter energy infrastructure; and delivering innovative energy solutions in a rapidly changing world – all while sustaining financial health in a positive regulatory environment,” Kuhn said.
The nation’s energy mix has changed over the last decade as the electric power sector has made gains in reducing carbon dioxide emissions. At the end of 2017, emissions were 28 percent below a 2005 baseline, the lowest level since 1988, EEI said. By 2024, the industry plans to retire more than 100 gigawatts of coal-based electricity generation. That trend is expected to continue as a number of utility companies have committed to further lowering CO2 emissions by 2030 and 2050.
“Today, our customers increasingly are informed about energy, and it matters to them where it comes from and how they use it,” Kuhn said. “Saving money, using less energy, and protecting the environment are all important to them, and to us.”
The industry association will continue urging policymakers to support investments in the energy grid, which Kuhn said was necessary to integrate advanced clean energy technologies reliably and affordably. Specifically, EEI is promoting battery technologies for energy storage and electric vehicles. In 2018 approximately 338 megawatts of battery storage capacity was installed.
EEI’s member companies have also taken the lead on supporting infrastructure for electric transportation. Electric power companies will invest more than $1 billion over the next five years to deploy charging infrastructure and to create customer programs to accelerate the adoption of electric vehicles (EVs).
“Electric transportation is a huge win for our industry: it grows load; attracts new customers; reduces carbon emissions and improves air quality; and helps reinforce the grid,” Kuhn said.
In October, more than 1 million EVs were on the nation’s roads and a recent report from EEI and the Institute for Electric Innovation projects that 2 million EVs will be seen by early 2021, and more than 18 million by 2030. Roughly 9.6 million charge ports will be required to support them.
EEI’s Kuhn also discussed the industry’s focus on improving the customer experience by providing customized energy solutions. EEI has been working with companies to create innovative approaches to enhance customer operations and engagement for residential customers. Energy management mobile apps, for example, can give customers access to their energy use data that can help them save money on their electric bills while also making bill payment easier.
Looking at the regulatory landscape, EEI detailed several priorities it hopes to see advanced by the Federal Energy Regulatory Commission (FERC). Reforming the 40-year-old Public Utility Regulatory Policies Act (PURPA) is at the top of the list, which EEI says has led to billions of dollars in excess costs for customers.
EEI is also focused on policies that recognize the important role that transmission plays, as well as energy price formation issues to ensure that energy prices reflect appropriate costs to operate the energy system.
Investor-owned utilities have invested more than $445 billion in transmission and distribution infrastructure since 2005, according to EEI. Those funds have helped to integrate renewables and allow for the adoption of smart technologies. However, EEI also says federal policy changes are necessary, particularly with energy infrastructure siting and permitting issues that impact electric transmission lines and natural gas pipelines.
The electric utility industry is committed to maintaining reliability and keeping electricity prices low, while also advocating for policies that benefit all customers, Kuhn added during his presentation.
