Mr. Kuhn is President of the Edison Electric Institute, the association of investor-owned electric companies whose members generate and distribute approximately three-quarters of the U.S.'s electricity. In addition, EEI has a growing affiliate membership of utilities worldwide. Mr. Kuhn joined the Institute in 1985 as executive vice president, was named chief operating officer in 1988, and elected president in 1990. Prior to joining the Institute, Mr. Kuhn was president of the American Nuclear Energy Council, which subsequently merged with the Nuclear Energy Institute. The Council represented virtually all of the companies in the commercial nuclear power industry.
Mr. Kuhn currently serves on the Boards of the United States Energy Association, The Alliance to Save Energy, The Electric Drive Transportation Association, and the American Council for Capital Formation. He is Chairman-Emeritus of the Committee of 100 of the U.S. Chamber of Commerce, Chairman-Emeritus of the American Society of Association Executives, and past-chairman of ASAE/Key Industry Association Committee and of the Trade Association Liaison Council.
1. Carbon pollution is an ongoing issue for energy companies. What are the measures that can be taken to mitigate this, without compromising the ability to meet energy demand?
The U.S. electric power industry has led the way in taking voluntary actions to reduce, avoid, or sequester greenhouse gas (GHG) emissions. In fact, the industry’s carbon dioxide emissions have been reduced by 14 percent below 2005 levels, as of 2013. At the same time, sulfur dioxide and nitrogen oxides emissions both have been cut by about 75 percent from 1990 levels, and the U.S. Environmental Protection Agency’s (EPA’s) new rule on mercury emissions will finalize a 90-percent reduction in emissions. These impressive reductions were made during a time when electricity use grew significantly.
The industry also is investing more than $90 billion each year, on average, to transition to a cleaner generating fleet and to enhance the electric power grid to meet the needs of our 21st-century digital economy.
It is crucial to recognize the significant actions and investments already taken by U.S. electric utilities to reduce GHG emissions, transition to a cleaner and enhanced generation fleet, and comply with environmental regulations.
As the EPA develops rules to regulate power plant GHG emissions, it’s important that the agency provides states with maximum flexibility when creating compliance plans and that credit be given for a range of actions taken to date that have resulted in GHG emission reductions.
Preserving a diverse portfolio of fuel sources is critical for the production of reliable and affordable electricity for all customers.
2. The predicted investment outlook for the energy sector in the U.S. is bright. What are some of the steps taken in the U.S. to boost investors’ confidence in the energy sector? Will these be applicable to Asia as well?
For 70 years, EEI has worked with investment and merchant banks, ratings agencies, financial press, and private investors on industry and individual utility financial and investment issues. The electric power industry is capital-intensive. Utilities require constant financing from capital markets and private investors.
To assist our U.S. member utility companies, EEI has initiatives to build and strengthen investor and market confidence in the electric utility sector. Among our efforts, EEI:
- Hosts international financial conferences, such as the Asian Energy Financial and Investment Conference, to attract global utilities, analysts, bankers, rating agencies, and reporters.
- Sponsors members-only Wall Street briefings and presentations.
- Holds state-of-the-art industry accounting issues training courses.
- Sponsors investor relations and confidence initiatives and programs.
- Hosts energy trading, risk management, governance, and financial disclosure forums.
Since utilities in the United States and the rest of the world experience the same stock market and financial pressures, the initiatives we have taken are applicable in Asia.
3. The U.S. is currently diversifying its energy production to encompass more sustainable sources like wind and solar. What are the lessons from this process that Asia could learn as the region looks to tap into these natural resources?
Today, the U.S. fuel mix is changing and becoming cleaner. Importantly, our fuel sources remain diverse—coal, natural gas, nuclear, and renewable energy, including water, wind, and sun.
Rooftop solar panels are one example of distributed generation (DG), which is expanding its role in the U.S. energy mix. DG systems also include microturbines, fuel cells, small wind turbines, and other forms of small-scale electricity generation.
As Asia looks to tap into these resources, it’s important to identify the role that community and large-scale generation can play in meeting customer expectations. It’s also important to address the role of subsidies, as well as the regulatory policies that will be needed to properly integrate these new technologies into the grid to benefit all electricity customers and to ensure that electricity remains reliable and affordable.
4. What impact will the current U.S. energy renaissance have on the Asia Pacific region given energy markets are becoming increasingly connected?
The U.S. energy renaissance is a game changer. Abundant shale oil and shale gas present the real possibility that the U.S. will be energy self-sufficient within a decade. Since the Asia Pacific region is highly dependent on external energy supplies, the U.S. and Canada are in line to become major exporters of liquefied natural gas (LNG) to the region. We are already seeing Asian investment in North American gas fields and LNG terminals. Asian LNG buyers are lining up to take the gas as soon as it becomes available.
5. There is an increasing focus on cybersecurity. As an industry, how can we ensure we are better prepared for cyber threats?
There is no single solution that can make the electric power grid completely safe and secure, but it’s important to remember that our industry is the only critical U.S. infrastructure sector that is subject to mandatory, enforceable cybersecurity standards. These standards help to ensure that the grid operates reliably across all segments of our sector.
Protecting the grid from cyber attacks also requires a coordinated effort among electric utilities and the federal government. To this end, EEI helped to strengthen the industry-government partnership on security and resiliency last year by rebuilding the Electricity Subsector Coordinating Council (ESCC). The ESCC includes U.S. utility CEOs and trade association leaders representing all segments of the industry.
The ESCC serves as the principal liaison between the federal government and the electric power sector, with the mission of coordinating efforts to prepare for, and respond to, national-level disasters or threats to critical infrastructure. The ESCC is focused on providing tangible progress in three main areas:
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Tools & Technology: Deploying proprietary government technologies on utility systems that enable machine-to-machine information sharing and improved situational awareness of threats to the grid.
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Information Flow: Making sure actionable intelligence and threat indicators are communicated between the government and industry in a time-sensitive manner.
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Incident Response: Planning and exercising coordinated responses to an attack.