5 major utility CEOs discuss the transformation of the energy system [View all]

[kristopher]

EEI 2015: 5 major utility CEOs on the transformation of the energy system
Chiefs of Edison International, AEP, Exelon and Southern hold revealing panel discussion

IIt’s not often that journalists get the chance to hear the leaders of four major utilities talk about the hot-button issues in the electric sector, but that’s exactly what the EEI annual convention provided Wednesday. The panel of the EEI board, moderated Dominion CEO Tom Farrell, featured outgoing EEI chair and Edison International CEO Ted Craver, Exelon CEO Chris Crane, Southern Company CEO Tom Fanning, and American Electric Power CEO Nick Atkins. They spoke on a variety of topics, from renewables subsidies to storage and the Clean Power Plan.

Renewables & Subsidies

Farrell started off the panel by asking about subsidies for renewable energy, a popular subject over the two days of conference conversations. Exelon’s Crane said that he thought the solar investment tax credit was a good example of functioning subsidy policy, while the wind production tax credit has driven overdevelopment, distorted power markets, and “skews” investment choices in favor of wind. Exelon is currently seeking taxpayer assistance for its Illinois nuclear plants, arguing they are essential for reliability, because low-cost, subsidized wind is undermining the economics of the plants. Those plants, due to their design, must run nearly continuously, even when there are lower-cost options on the market.

Fanning took a much harder line on the subject of subsidies, criticizing federal government efforts to “drive social change with the tax code,” while also expressing his opposition to a price on carbon, the Clean Power Plan, and a cap-and-trade system. Customers should define the resource mix, he said, not the government.

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What Craver was more confident about, however, was Musk’s prediction that in the long run, a third of generation will be distributed, which could also hurt load growth for utilities. To that, Southern’s Fanning had a simple answer: “If distributed generation is eroding your growth, own distributed generation!”

Much more at: http://www.utilitydive.com/news/eei-2015-5-major-utility-ceos-on-the-transformation-of-the-energy-system/400530/