JUNE 2015

In This IssueTop Story: EEI Members Power Innovation at Annual Convention

In Depth: Partnerships Amplify the Energy Sector’s Focus on the Future

Company Spotlight: EEI Honors Edison Award Winners

News from the Hill: Energy Legislative Update

Industry in Action: Building the Next Generation Workforce

An American Industry Leader

Register Now: Webinar on EPA’s Final Clean Power Plan

What We’re Reading: The Evolving Electric Power Industry

In Case You Missed It: Leo Denault on How Entergy Powers Economic Growth

On Twitter: Utilities Lead a Bright Future for Solar

Top Story: EEI Members Power Innovation at Annual ConventionEEI’s 2015 Annual Convention showcased the ideas and innovations that aretransforming the future of the electric power sector—a future that is happeningnow. The program, which began June 7 in New Orleans, delivered engagingconversations on this key topic—innovation—from EEI member companyCEOs, industry thought leaders, and keynote speakers who all share apassion for powering possibilities and a commitment to advancing ourindustry. Renowned innovator Elon Musk, CEO and product architect of Tesla Motors,shared his company’s bold new energy storage vision in a free­rangingconversation with outgoing EEI Chairman and Edison International Chairman,President and CEO Ted Craver and Tesla Motors Chief Technology Officer

and Co­Founder JB Straubel. Musk emphasized the importance of collaborating with utilities to achieve a sustainable future, and indicated that Teslahas been working with utilities for two years. “Where the future is going for utilities is quite positive in the long term,” Musksaid. Straubel outlined how electric vehicles hold an opportunity ripe for partnership with utilities and as a source of loadgrowth. Energy Secretary Ernest Moniz delivered remarks on the evolving U.S. energy landscape and the Administration’s energypriorities. He also outlined the recommendations in the just­released Quadrennial Energy Review, particularly relating to

grid modernization, resiliency, and infrastructure investment, and announced two new exciting partnerships (see below). This year’s 11 Electricity Matters breakout sessions also provided invaluable insights on the opportunities and challengesfacing the electric power industry. Attendees participated in panel discussions and interactive Q&A with dozens of EEImember company CEOs, senior executives, industry thought leaders, and other key stakeholders.

In “Approaches to Grid Security and Resiliency,” utility and industry leaders discussed specific actions the electric sector istaking to protect the grid from cyber and physical security threats.

During “The Role of the Utility in the Evolving Distribution Grid,” company leaders, regulators, and consumer advocateshighlighted the role of the utility in four areas—planning; design and operation; infrastructure enhancement; and customereducation and protection. The “Complying with the EPA Clean Power Plan” session noted how new and innovative technologies can quickly changea state’s strategy for complying with the forthcoming new rules.

In “Microgrids and More—Integrating Diverse Resources into the Grid,” panelists discussed some of the critical questionssurrounding the future of microgrids and emerging distributed energy resources. Who should pay for them? Who shouldown them? What role will storage play? Other Electricity Matters sessions explored Utility Investments in Energy Storage; Innovative Products and Services toMeet Customer Needs; Electrification—Utilities Leading the Charge; Leading the Solar Growth Engine; Competing forTalent: Building the 21st­Century Workforce; and Shaping the 21st­Century Power Grid.

During the Convention, EEI’s Board of Directors elected Nick Akins, Chairman, President and CEO of American ElectricPower, as EEI Chairman for the 2015­2016 cycle. Also elected were four vice chairmen: Tom Fanning, Chairman,President and CEO of Southern Company; Chris Crane, President and CEO of Exelon Corporation; Pat Vincent­Collawn,Chairman, President and CEO of PNM Resources; and Greg Abel, Chairman, President and CEO of Berkshire HathawayEnergy. “Nick has been an invaluable member of our leadership team, and his wealth of experience and strong leadership will beof tremendous benefit to the industry during this exciting time of change,” said EEI President Tom Kuhn. “I would like toextend our sincere gratitude and thanks to outgoing EEI Chairman Ted Craver for his leadership, vision, and contributionsduring this transformational time for our industry,” Kuhn added.

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In Depth: Partnerships Amplify the Energy Sector’s Focus on the FutureAt this year’s EEI Convention in New Orleans, Energy Secretary Ernest Monizannounced two exciting partnerships between the energy sector and theDepartment of Energy (DOE). First, the EV­Everywhere Utility Partnership will identify and pursuecollaborative opportunities for the government and the utility industry topromote and accelerate the nationwide adoption of electric vehicles (EVs)and charging infrastructure. “Transportation electrification benefits electric utility customers, while alsobolstering America’s energy security and sustainability. These are prioritiesour industry shares with our government partners,” said EEI President TomKuhn.

Kuhn and Moniz signed a memorandum of understanding to take a variety of joint actions—including research,infrastructure, and outreach programs—to boost the widespread adoption of EVs.

This collaboration builds on EEI’s established record of leadership on transportation electrification. Last year, EEI and itspartnering member companies committed to invest at least 5 percent of their annual fleet budgets in plug­in vehicles andtechnologies. That initiative has exceeded the anticipated $50 million annual industry commitment, and will total morethan $90 million in 2015, adding more than 800 new plug­in vehicles and 740 new charging ports to utility fleets. Readthe fact sheet to learn more.

Secretary Moniz also announced that DOE will partner with EEI and a number of government agencies and utility industrygroups to form the Utility Industry Federal Agency Workforce Initiative, a multi­year effort dedicated to facilitating therecruitment, training, and retention of exiting service members, veterans, and their spouses into employment in the utilityindustry. According to the Center for Energy Workforce Development (CEWD), the electric utility industry will need to replace almost

half of its current workforce over the next decade. “Our industry is facing significant retirements of our existing workforce, and we are working together to develop solutionsand approaches to identify a talented, high­skilled, and innovative industry workforce for the future,” Kuhn said. In addition to EEI and CEWD, other participants in the Initiative include the Departments of Energy, Defense, Labor, andVeterans Affairs; the Nuclear Energy Institute; the National Rural Electric Cooperative Association; and the American GasAssociation. “Energy is America’s great economic advantage in the 21st­century global economy, but we’ll need a 21st­century energyinfrastructure to keep that advantage, built by a 21st­century workforce,” Moniz said. “America’s talented pool of veteransprovides the leaders our utility industry needs to build a new energy future.” The Initiative will work to identify and promote training and credentialing opportunities for veterans to facilitate their entryinto the utility industry; share information on trends about exiting military members; promote opportunities for immediaterecruitment of exiting service members; and assess how military training requirements align with job requirementsthroughout the utility industry. This new initiative complements the Troops to Energy Jobs program, which was launched in 2011 by CEWD, inpartnership with EEI and its member companies. Read the fact sheet to learn more.

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Company Spotlight: EEI Honors Edison Award WinnersEEI President Tom Kuhn has announced the domestic and internationalwinners of the 2015 Edison Awards. EEI’s most prestigious honor, the EdisonAward recognizes distinguished leadership, innovation, and contributions tothe advancement of the electric industry for the benefit of all. Tampa Electric received the Edison Award for its innovative design andconstruction of a cutting­edge wastewater cooling and disposal system at itsPolk Power Station in Polk County, FL. “The company also exhibiteddistinguished leadership by forging important regional partnerships toaddress the needs of all stakeholders,” said Kuhn. Ergon Energy and SaskPower received the International EdisonAward. Ergon developed and implemented the innovative ROAMES VirtualWorld Asset Management System, designed to improve risk management,

disaster response, and safety performance while reducing costs and enhancing its customer service and valueproposition. The ROAMES system allows infrastructure managers to investigate and monitor the condition andperformance of the network in extremely high fidelity—all without the need to deploy workers in the field. SaskPower earned the International Edison Award for its pioneering Boundary Dam Integrated Carbon Capture andStorage (CCS) Project, which launched in 2014 as the world’s first CCS process on a coal­based power plant using post­combustion technology. By rebuilding a coal unit that was reaching the end of its useful life with CCS technology,SaskPower brings reliable baseload power to approximately 100,000 homes and businesses while reducing carbondioxide emissions by one million tons annually, equivalent to removing 250,000 cars from Saskatchewan’s roads eachyear. Read more about the award­winning projects here and here.

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News from the Hill: Energy Legislative UpdateThe House and Senate energy committees both continue to work ondeveloping broad energy bills. House Energy and Commerce CommitteeChairman Fred Upton (R­MI) and Senate Energy Committee Chairman LisaMurkowski (R­AK) have announced that they want to mark up bipartisanenergy legislation this summer. The House Energy and Power Subcommittee released seven discussiondrafts covering a wide range of energy issues and held hearings on each ofthe drafts. Of particular interest to EEI were proposals on energy reliability andsecurity, workforce development, energy efficiency, and improving thepermitting processes for hydropower facilities and natural gas pipelines.

The Senate Energy Committee held four hearings covering a range of topics,including energy efficiency, energy infrastructure, energy supply, and energyaccountability and reform. The Committee reviewed more than 100 energybills introduced by many Senators at these hearings. Electricity markets are changing rapidly, with significant changes in howelectricity is generated, delivered, stored, and used. In response, EEI is urgingCongress to focus on measures that would modernize the siting andpermitting of energy infrastructure, facilitate improved coordination betweenthe industry and the federal government on energy security initiatives,encourage the development of a 21st­century energy workforce, and advancea number of energy efficiency proposals. In addition, EEI is advocating forupdating a number of aging federal statutes, such as the Public UtilityRegulatory Policies Act, that result in electricity consumers paying higher

prices than they otherwise would. EEI also is strongly opposing a number of legislative proposals that would expand andperpetuate federal subsidies for certain types of energy resources, all of which would ultimately increase electricity ratesfor consumers.

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Industry in Action: Building the Next Generation WorkforceThroughout EEI’s Annual Convention, EEI and the Center for EnergyWorkforce Development (CEWD) highlighted the industry’s new Get intoEnergy/Get into STEM program. Under this new initiative, 11 CEWD membercompanies sponsored FIRST® Robotics competitions and the FIRST® TechChallenge. CEWD’s support for FIRST (For Inspiration and Recognition ofScience and Technology) provided funding for onsite robot doctors andcharging stations during the 2015 super­regional and world championshipcompetitions and covered registration fees for more than 180 new FIRST Techteams. Two industry­sponsored FIRST Robotics teams were on site at theConvention to demonstrate their robots and discuss how their participation inFIRST is preparing them for careers in the engineering and technology fields.

Helping America’s youth reach their full academic and career potential is a longstanding priority for the energy industry.CEWD programs and partnerships provide students with unique opportunities, mentoring, and motivation as they maketheir journey from the classroom to the workplace. The CEWD member sponsors include: Ameren, Consumers Energy, DTE Energy, Duke Energy, Edison International,Exelon, MidAmerican Energy, National Grid, NextEra Energy, Pacific Gas and Electric, and Southern Company. Watch more here.

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An American Industry LeaderAmerican Electric Power is one of the largest electric utilities in the United States, delivering electricity to morethan 5.3 million customers in 11 states. AEP ranks among the nation’s largest generators of electricity, owningnearly 32,000 megawatts of generating capacity in the U.S. AEP also owns the nation’s largest electricitytransmission system, a more than 40,000­mile network that includes more 765­kilovolt extra­high voltagetransmission lines than all other U.S. transmission systems combined. Learn more at aep.com. (Back to top)

Register Now: Webinar on EPA’s Final Clean Power Plan Last June, EPA released proposed guidelines for states to regulategreenhouse gas emissions from existing electric generation units. The EPA’sfinal rules—known as the Clean Power Plan—are expected this summer.These rules will lead to dramatic changes in how electricity is produced,transmitted, and consumed. States will be required to submit complianceplans for EPA approval that demonstrate how they will achieve their state­specific emissions goals. What will the final rules say when they are released? What key goals anddeadlines will be included? All of these details will be explained during an EEI­hosted webinar that willtake place at 2:00 p.m. EDT two business days after the final rules arereleased. Experts from EPA, states, and other groups will summarize the final

guidelines, highlight what has changed since the rules were proposed, and outline what they mean for electric utilities,state policymakers, regulators, and other key industry stakeholders. Register now for this EEI­hosted webinar. Participant information will be sent to registrants the day the final rules arereleased.

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What We're Reading: The Evolving Electric Power IndustryA new book by the Edison Foundation’s Institute for Electric Innovationfeatures more than 20 essays by electric utility and technology companyleaders, policymakers, and other stakeholders on the evolution of the electricpower industry. “Today the electric utility industry—a fundamental industry that powers oureconomy and our lives—is in the midst of a profound transition,” said LisaWood, book editor and Executive Director of the Institute for ElectricInnovation. “In addition to its traditional role of delivering electricity tocustomers reliably and affordably, the grid is becoming a flexible platform forefficiently integrating new energy resources, new technologies, and newdevices.” Thought Leaders Speak Out: The Evolving Electric Power Industry outlines

three distinct and interrelated areas driving the transformation of the electric power industry today—the evolving grid, theevolving customer, and evolving regulation. Evolving Grid: The evolving grid will rely increasingly on information technology to enhance operations and improvereliability; provide seamless integration of new energy resources; and enable more customer engagement. The grid isbecoming more connected and more distributed—a Grid of ThingsTM—as more devices and assets are connected to it. Evolving Customer: The electric utility customer is changing—and driving change. How will electric utilities, regulators,and technology companies collaborate to unlock the value in new customer service offerings? Evolving Regulation: What are the basic principles needed for a new regulatory paradigm? The power grid is evolving.Customers are evolving. Electric utilities are changing. But, the regulatory model remains essentially unchanged. The evolving grid, the evolving customer, and evolving regulation are all part of a three­legged stool that requires balanceto help drive the sustainable evolution of the electricity grid—among the most essential of our critical infrastructures andthe one that powers all others. Read more from Thought Leaders Speak Out: The Evolving Electric Power Industry. (Back to top)

In Case You Missed It: Leo Denault on How Entergy Powers Economic Growth"At Entergy, we believe we are living in a time of almost unprecedentedopportunity for our company—and for our communities and customers, a timeof unprecedented promise," says Entergy Corporation Chairman and CEOLeo Denault.

"The more than 13,000 employees at Entergy understand that their top priorityis to keep power flowing—and keeping customers' lights on is a responsibilitywe take seriously. But our vision is to be more than a power company. It alsois to power the lives of the people and communities we serve.

"We aim to fulfill this vision in many ways—by investing millions in education,workforce training, and myriad other efforts that support our neighbors,particularly when they need us most.

"But when we invest in our infrastructure, and strengthen the safety andreliability of the power we provide, we help drive growth and bring jobs to thestates we serve. At Entergy, we consider this not only our business, but alsothe single best contribution we can make to the communities we all call

home."

Read more from Leo Denault.

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On Twitter: Utilities Lead a Bright Future for Solar

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Questions or comments?Contact Clare James Johnson at cjohnson@eei.org

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