Energy Biz - September/October 2008 - (Page 52) yackir a I was president of FPL Energy when we were carbon sequestration — provide the backbone of a reliable and expanding our position in wind. We worked with wind economical system? Are we going to be in an era when politics manufacturers to get the cost down. When we started in that written with a capital ‘P’ continues to make it so difficult to business, it was 12 and 13 cents a kilowatt-hour. It got down to accomplish those large projects that we become dependent on about 6 or 7 cents, even below that smaller technologies, even though with the production tax credit. If the smaller ones are more expenyou invest in technology, the price sive? If the next president sets a Duke Energy points come down. course that deals with climate and 4 million electric customers energy supply issues in a decisive 500,000 gas customers EnErgyBiz Where is this way, most of the country can have 35,000 megawatts of generation 2007 OPEraTing rEVEnuE $12.7 billion industry headed? 15 to 20 cents per kilowatt-hour EMPLOyEEs 17,800 rOgErs It’s going to fundamenelectricity and continue to have tally change. In the 20th century, a high degree of reliability. If the Exelon our mission was the electrification next administration tries to make 5.2 million electric customers of America. Our mission will be all these decisions in the most 480,000 gas customers modified and we’ll add to that politically correct fashion, then 33,000 megawatts of generation making the communities we serve I think we’re looking at 30 to 40 2007 OPEraTing rEVEnuE $18.9 billion EMPLOyEEs 19,500 the most energy efficient in the cents electricity and very radical world. I envision a model that goes structural changes. I think it’s a MDU Resources Group from the generator, beyond the political bet as much as a tech120,500 electric customers meter to the networks embedded nology or an economic bet. Neither 511,100 gas customers in our customers’ applications. As party has got its act together on 499 megawatts of generation for solar on the rooftop, I see that how to combine environmental 2007 OPEraTing rEVEnuE $4.2 billion as the first step of putting storage policy and energy policy. We all EMPLOyEEs 14,019 technology into homes and offering find ourselves in places from time PNM Resources a higher quality of service. The to time where your stewardship 978,000 electric customers pressure to do energy efficiency of capital gives you different 496,000 gas customers really opens the door to expand the responsibilities than you would 2,650 megawatts of generation have if you were an elected public boundaries of our business model. 2007 OPEraTing rEVEnuE $2.5 billion representative. We have to be very I think the new technologies, EMPLOyEEs 3,124 careful about investing very large whether they’re solar or wind or Sierra Pacific Resources amounts of money in things that battery technologies, are evolving. 1.2 million electric customers don’t work for customers for very One of the reasons that we stepped 150,000 natural gas customers long or don’t work for shareholders up on solar is I want to incorporate 5,100 megawatts of generation for a very long time. So there’s a those technologies into this new 2007 OPEraTing rEVEnuE $3.6 billion real dichotomy between advocating model. We’re going to take our EMPLOyEEs 3,100 what we think is good for America, whole grid from analog to digital. which we all try to do in our own We’re going to be able to change Southern Company halting ways, and doing what we our voltage levels in off-peak 4.4 million electric customers 42,000 megawatts of generation must do for our shareholders. That periods. They could save 1 percent 2007 OPEraTing rEVEnuE $15.35 billion kind of continues to haunt this to 1.5 percent of the use of elecEMPLOyEEs 26,000 industry as it always has. tricity on our system. So, I mean, we have line loss today that’s 8 to 9 r aTcLiFFE While I’m techTECO Energy percent and we are starting to work nology optimistic like Jim I also 667,000 electric customers that issue. There’s a remarkable set have a very practical sense like 4,400 megawatts of generation of opportunities that will unfold John about what this is going to 330,000 gas customers served by Peoples Gas 2007 OPEraTing rEVEnuE $3.5 billion in the next five to 10 years. If we take from a political standpoint. It EMPLOyEEs 4,267 do it right and we can work well is incumbent on us to try to find with the regulators to allow us to a good common sense balance modify the business model, you’ll see a fundamentally different between this desire to expand the economy and to improve industry in the next decade. the environment, but continue the very fundamental job rOwE The real issue is are we going to continue to be in that we have as an industry to provide reliable and affordable an era where large central stations — nuclear or coal with electricity to run this economy. It is absolutely essential. 52 E n E rgyB i z September/October 2008
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