The Electric Power Industry:

Decision Making Past, Present and

Future

2

Utility Decision Making

3

The Rise of Emissions Trading

▪ 1990 Clean Air Act Amendments

▪ Title IV - AcidRain

▪ NOx Budget Trading Program

▪ Clean Air Interstate Rule

4

Multi-Pollutant, Multi-Statute Planning

▪ Air: Cross-State Air Pollution Rule, Mercury and Air

Toxics Standards, NAAQS, Regional Haze, etc.

▪ Water: Effluent Guidelines, Cooling Water Intake

Structures

▪ Waste: Coal Combustion Residuals

▪ GHG: CAA Section 111

▪ State requirements

5

Driving the Clean Energy Transformation

Contributing to the clean energy transformation are:

▪ Low natural gas prices

▪ Declining costs for renewable technologies

▪ Demand for clean energy from customers, cities, states,

and investors

▪ Public policies, such as state renewable energy

requirements and environmental regulations

▪ Financial incentives, such as tax credits for certain

generation resources

6

U.S. Power Sector

Carbon Dioxide Emissions Declining (2005-2017)

▪ More than 1/3 of U.S.

power generation

comes from carbon-

free sources.

▪ As of 2017, industry

CO2 emissions were

28 percent below 2005

levels—the lowest

since 1988.

▪ This trajectory is

expected to continue

based on current

trends.Source: Developed from U.S. Energy Information Administration, Monthly Energy Review, October 2018.

7

CO2 Emissions:

Electric Power and Transportation Sectors

Source: U.S. Energy Information Administration, Monthly Energy Review, October 2018

8

CO2 Emissions: Electric Power, Transportation,

And Industrial Sectors

Mill

ion

Met

ric

Ton

s o

f C

arb

on

Dio

xid

e (M

MT

CO

2)

Source: U.S. Energy Information Administration, Monthly Energy Review, October 2018

9

Mix of Resources Used to Generate

Electricity Has Changed Dramatically

21.6%Natural

Gas

19.4%Nuclear

2.5%Non-Hydro

Renewables

6.0%Hydro

48.5%Coal

0.5%Other

1.6%FuelOil

2007 National Energy Resource Mix

31.7%Natural

Gas

20.0%Nuclear

9.6%Non-Hydro

Renewables

7.4%Hydro

30.1%Coal

0.5%Other

0.5%FuelOil

2017 National Energy Resource Mix

Source: U.S. Department of Energy, Energy Information Administration. Percentages reflect Megawatt hours.

10

Electric Companies Use a Diverse Mix

Of Resources to Generate Electricity

Measured in Mega-watt hours.

*Includes generation by agricultural waste, landfill gas

recovery, municipal solid waste, wood, geothermal,

non-wood waste, and solar.

**Includes generation by tires, batteries, chemicals,

hydrogen, pitch, purchased steam, sulfur, and

miscellaneous technologies.

Sum of components may not add to 100% due to

independent rounding.

Source: U.S. Department of Energy, Energy Information

Administration, Power Plant Operations Report (EIA-923);

2017 preliminary generation data.

March 2018

11

Carbon-free Electricity Generated (2017)

Source: EIA. Electric Power Monthly, October 2018.

Table 1.1 and 1.1a.

Nuclear energy remains the largest

source of carbon-free electricity:

Currently, 98 reactors in 30 states

produce nearly 20 percent of our

nation’s electricity and almost

60 percent of our carbon-free

electricity.

2017

Carbon-free Electricity Generated

12

New Capacity Is Mostly Natural Gas, Wind, Solar;

Solar and Wind Production Is Increasing

Generation (2017)

Source: Institute for Electric Innovation, December 2018.

Capacity Additions (2017)

13

New Capacity Is Mostly

Natural Gas, Wind, Solar

Source: U.S. Energy Information Administration, Monthly Energy Review, March 2018

14

Electric Companies Are Leading

On Clean Energy

Cutting Emissions

15

Key Takeaways

▪ The electric power industry is leading on clean energy and delivering the clean energy

future customers want. We support increasing renewables as part of our commitment to

both clean energy and reducing carbon emissions.

▪ It is important to utilize a diverse mix of generation resources to achieve a clean energy

future. By continuing to invest in a range of 24/7 energy sources and other technologies,

we can reduce carbon emissions faster and bring the benefits of affordable, reliable and

clean energy to everyone.

▪ The electric power sector has made significant progress both in deploying clean energy

and in reducing carbon emissions, and will continue to do so. Electric transportation is a

key way to spread the benefits of clean energy across the economy and reduce

emissions.

▪ Working with the electric power industry and building infrastructure to support clean

energy are the best ways to deliver an affordable, reliable, and clean energy future.