Edison Electric Institute

Last updated
Edison Electric Institute
Formation1933
Headquarters701 Pennsylvania Avenue, N.W. Washington, D.C. 20004-2696
Location
Chairman
Pedro J. Pizarro
President
Dan Brouillette
Website www.eei.org

The Edison Electric Institute (EEI) is an association that represents all U.S. investor-owned electric companies.

Contents

Its members provide electricity for 220 million Americans, operate in 50 states and the District of Columbia, and directly employ more than one million workers. [1]

EEI has 70 international electric companies as Affiliate Members, and 250 industry suppliers and related organizations as Associate Members.

The organization’s president is Dan Brouillette, who was Secretary of Energy in the Donald Trump administration from 2019 to 2021. [2]

Leadership

Dan Brouillete became head of the EEI in 2024. The choice of Brouillette as president was criticized by the environmental group Evergreen Action. [3]

Membership

Members of the Edison Electric Institute are investor-owned utility companies, meaning that they are privately held companies that supply power and electricity to businesses and consumers.

Some of the larger members include: [1]

Issues

2017 tax cut

The Tax Cuts and Jobs Act, the largest tax overhaul in 30 years, was passed by Congress and signed by President Trump at the end of 2017. The legislation had several provisions that benefit the electric industry: maintaining the federal income tax deduction for interest expense for regulated electric companies; maintaining the federal income tax deduction for state and local taxes; and providing for the “continuation of normalization, including addressing excess deferred taxes resulting from a reduction in the tax rate.” [4]

Electric vehicles

On June 8, 2015, U.S. Energy Secretary Ernest Moniz and the Edison Electric Institute signed a memorandum of understanding (MOU) regarding plug-in electric vehicles (PEVs). The MOU sets up a collaboration between the government and EEI to make PEVs, by the year 2022, as affordable as regular gas-powered vehicles were in 2012. The Department of Energy runs an initiative called the "EV Everywhere Grand Challenge", which put forth the 2022 affordability goal. The program coincides with the popularity of electric vehicle sales, which have increased by 128 percent between 2012 and 2014. [5]

EEI runs a program called the Employee PEV Engagement Initiative. The goal is to "increase electric vehicle readiness, especially in the workplace," according to the Department of Energy. According to the Department of Energy, Kate Brandt, Federal Chief Sustainability Officer at the White House Council on Environmental Quality, said, "Today's Memorandum of Understanding with the nation's electric power industry allows the Department of Energy to tap into the experience and scale of an industry that is truly leading the way in moving the electric vehicle market forward." [5]

In pursuing the initiative, EEI and the DOE will work with other federal agencies including Department of Transportation (DOT), General Services Administration (GSA), Council on Environmental Quality (CEQ), and the White House. [5]

Grid security

The energy grid is a complex, interconnected network of generation, transmission, distribution, control, and communication technologies. Any of these can be damaged by either natural events or malicious attacks such as cyber or physical attacks. The electric power industry has engaged with a series of initiatives meant to protect the energy grid from these threats. The industry collaborates with the National Institute of Standards and Technology, the North American Electric Reliability Corporation, and federal intelligence and law enforcement agencies. [6]

On September 20, 2018, EEI announced that it supported the Trump Administration's unveiled National Cyber Strategy. The protection of critical infrastructure such as the electric grid were included in the National Cyber Strategy. [7]

Hurricane Maria

After Hurricane Maria hit the island of Puerto Rico in 2017, the federal government invested $3.2 billion into restoring the island's power grid. The Edison Electric Institute deployed Carlos D. Torres, a retired vice president at Consolidated Edison, to Puerto Rico to coordinate storm rebuilding of the power grid. Subsequently, Torres was appointed by Gov. Ricardo Rossello as coordinator for storm restoration. [8]

Unmanned aircraft

EEI supports the use of drones (unmanned aircraft systems, or UAS) by electric power companies to maintain electric grids and restore downed service. In July 2016, Congress passed legislation (H.R. 636) that "includes provisions supporting electric power companies utilizing unmanned aircraft systems (UAS) for energy grid maintenance and service restoration." [9]

Renewable energy

Partnership with pro-environment group

In February 2018, EEI and the Natural Resources Defense Council (NRDC), a non-profit international environmental advocacy group, released a joint statement outlining 21 policy priorities on which both organizations would work together to advance clean energy. Both organizations said the recommendations are designed to “accelerate the clean energy transition; promote investment in smarter energy infrastructure, while ensuring affordable and reliable electricity; and facilitate collaboratively developed rate design and regulatory reforms that accommodate rapid technology change and evolving customer expectations.” [10]

Advocacy for changes to homeowner solar panel policies

Between 2011 and 2017, rooftop solar panel installations had "explosive growth — as much as 900 percent by one estimate." But by 2017, the growth stopped. Saturation in certain markets, such as California, and financial problems at several of the top solar panel makers are the main factors that caused the decline in growth. But, according to the New York Times, "the decline has also coincided with a concerted and well-funded lobbying campaign by traditional utilities, which have been working in state capitals across the country to reverse incentives for homeowners to install solar panels." EEI has played a central role in a national U.S. campaign to reduce renewable energy incentives. However, the EEI has been successful in rolling back state-level incentives for rooftop solar energy. [11]

Utilities are opposed to state rules, known as net metering, that are connected to homeowner-produced solar energy. Under net metering rules in many states, private solar customers can sell excess power they produce back to the grid at what is known as the "retail price," which is more than the utilities pay for the energy itself from energy producers. Utilities argue that this practice is unfair to homeowners who do not want or can't afford their own solar panels. [11]

ESG reporting template

In August 2018, EEI announced that it was launching an environmental, social, governance, and sustainability-related (ESG/sustainability) reporting template to help both consumers and the financial sector, the latter with "more uniform and consistent ESG/sustainability data and information." [12] EEI had launched a similar program as a pilot program in 2017. The template is the first of its kind, being "the first and only industry-focused and investor-driven ESG reporting framework." [12]

Opposition to emissions mitigation

In 2023, Reuters reported that the Edison Electric Institute was seeking to lobby against the Biden administration's proposals to require upgrades to existing natural gas-fired power plants in order to curb climate-warming emissions. [13] [14]

Foundation

The Edison Electric Institute runs the Edison Electric Institute for Electric Innovation foundation, a 501(c)(3) charitable organization. The foundation's main activities are research, holding conferences, giving grants, and outreach to outside parties and organizations. The foundation's three main goals are to educate the public about how electric power is produced, delivered, and used; help make the environment clean and safe; and to improve the quality of life for all people. The governing structure of the foundation is a board of directors composed of electric industry CEOs. [15]

Related Research Articles

<span class="mw-page-title-main">Distributed generation</span> Decentralised electricity generation

Distributed generation, also distributed energy, on-site generation (OSG), or district/decentralized energy, is electrical generation and storage performed by a variety of small, grid-connected or distribution system-connected devices referred to as distributed energy resources (DER).

<span class="mw-page-title-main">Electric vehicle</span> Vehicle propelled by one or more electric motors

An electric vehicle (EV) is a vehicle that uses one or more electric motors for propulsion. The vehicle can be powered by a collector system, with electricity from extravehicular sources, or can be powered autonomously by a battery or by converting fuel to electricity using a generator or fuel cells. EVs include road and rail vehicles, electric boats and underwater vessels, electric aircraft and electric spacecraft.

<span class="mw-page-title-main">Net metering</span> Type of billing of electricity generated from renewable sources

Net metering is an electricity billing mechanism that allows consumers who generate some or all of their own electricity to use that electricity anytime, instead of when it is generated. This is particularly important with renewable energy sources like wind and solar, which are non-dispatchable. Monthly net metering allows consumers to use solar power generated during the day at night, or wind from a windy day later in the month. Annual net metering rolls over a net kilowatt-hour (kWh) credit to the following month, allowing solar power that was generated in July to be used in December, or wind power from March in August.

<span class="mw-page-title-main">Southern California Edison</span> Electrical utility in Southern California, United States

Southern California Edison (SCE), the largest subsidiary of Edison International, is the primary electric utility company for much of Southern California. It provides 15 million people with electricity across a service territory of approximately 50,000 square miles.

<span class="mw-page-title-main">Public Utility Regulatory Policies Act</span>

The Public Utility Regulatory Policies Act is a United States Act passed as part of the National Energy Act. It was meant to promote energy conservation and promote greater use of domestic energy and renewable energy. The law was created in response to the 1973 energy crisis, and one year in advance of a second energy crisis.

<span class="mw-page-title-main">Vehicle-to-grid</span> Vehicle charging system that allows discharge and storage of electricity

Vehicle-to-grid (V2G) describes a system in which plug-in electric vehicles (PEV) sell demand response services to the grid. Demand services are either delivering electricity or reducing their charging rate. Demand services reduce pressure on the grid, which might otherwise experience disruption from load variations. Vehicle-to-load (V2L) and Vehicle-to-vehicle (V2V) are related, but the AC phase is not sychronised with the grid, so the power is only available to an "off grid" load.

<span class="mw-page-title-main">Smart grid</span> Type of electrical grid

The smart grid is an enhancement of the 20th century electrical grid, using two-way communications and distributed so-called intelligent devices. Two-way flows of electricity and information could improve the delivery network. Research is mainly focused on three systems of a smart grid – the infrastructure system, the management system, and the protection system. Electronic power conditioning and control of the production and distribution of electricity are important aspects of the smart grid.

<span class="mw-page-title-main">American Gas Association</span>

The American Gas Association (AGA) is an American trade organization founded in 1918 representing and advocating on behalf of local energy companies which deliver natural gas throughout the United States.

<i>Home Power</i> Bi-monthly American magazine

Home Power was a bi-monthly American magazine based in Ashland, Oregon. At one time it had a circulation greater than 100,000.

<span class="mw-page-title-main">Solar power in California</span>

Solar power has been growing rapidly in the U.S. state of California because of high insolation, community support, declining solar costs, and a renewable portfolio standard which requires that 60% of California's electricity come from renewable resources by 2030, with 100% by 2045. Much of this is expected to come from solar power via photovoltaic facilities or concentrated solar power facilities.

There is a large array of stakeholders that provide services through electricity generation, transmission, distribution and marketing for industrial, commercial, public and residential customers in the United States. It also includes many public institutions that regulate the sector. In 1996, there were 3,195 electric utilities in the United States, of which fewer than 1,000 were engaged in power generation. This leaves a large number of mostly smaller utilities engaged only in power distribution. There were also 65 power marketers. Of all utilities, 2,020 were publicly owned, 932 were rural electric cooperatives, and 243 were investor-owned utilities. The electricity transmission network is controlled by Independent System Operators or Regional Transmission Organizations, which are not-for-profit organizations that are obliged to provide indiscriminate access to various suppliers to promote competition.

<span class="mw-page-title-main">Solar power in Hawaii</span> Overview of solar power in the U.S. state of Hawaii

The energy sector in Hawaii has rapidly adopted solar power due to the high costs of electricity, and good solar resources, and has one of the highest per capita rates of solar power in the United States. Hawaii's imported energy costs, mostly for imported petroleum and coal, are three to four times higher than the mainland, so Hawaii has motivation to become one of the highest users of solar energy. Hawaii was the first state in the United States to reach grid parity for photovoltaics. Its tropical location provides abundant ambient energy.

The National Association of Regulatory Utility Commissioners (NARUC) is the national association representing the U.S. state public service commissioners who regulate essential utility services, including energy, telecommunications, and water. Founded in 1889, the Association is a resource for its members and the regulatory community, providing a venue to set and influence public policy, share best practices, and foster solutions to improve regulation.

<span class="mw-page-title-main">Community solar</span> Solar power installation that accepts capital

A community solar project, farm or garden is a solar power installation that accepts capital from and provides output credit and tax benefits to multiple customers, including individuals, businesses, nonprofits, and other investors. Participants typically invest in or subscribe to a certain kW capacity or kWh generation of remote electrical production. The project's power output is credited to investors or subscribers in proportion to their investment, with adjustments to reflect ongoing changes in capacity, technology, costs and electricity rates. Community solar provides direct access to the renewable energy to customers who cannot install it themselves. Companies, cooperatives, governments or non-profits operate the systems.

<span class="mw-page-title-main">Net metering in the United States</span>

Net metering is a policy by many states in the United States designed to help the adoption of renewable energy. Net metering was pioneered in the United States as a way to allow solar and wind to provide electricity whenever available and allow use of that electricity whenever it was needed, beginning with utilities in Idaho in 1980, and in Arizona in 1981. In 1983, Minnesota passed the first state net metering law. As of March 2015, 44 states and Washington, D.C. have developed mandatory net metering rules for at least some utilities. However, although the states' rules are clear, few utilities actually compensate at full retail rates.

<span class="mw-page-title-main">Energy in California</span> Overview of the use of energy in California, U.S.

Energy in California is a major area of the economy of California. California is the state with the largest population and the largest economy in the United States. It is second in energy consumption after Texas. As of 2018, per capita consumption was the fourth-lowest in the United States partially because of the mild climate and energy efficiency programs.

James Eugene Rogers Jr. was an American businessman and author. He was president and CEO of Duke Energy, the largest electrical utility in the U.S., from April, 2006 until July 1, 2013. He stayed on as Chairman of the Board until retiring the following December. His book, Lighting the World, which explores the issues involved in bringing electricity to over 1.2 billion people on earth who lack it, was published August 25, 2015, by St. Martin's Press. The book asserts that access to electricity should be recognized as a basic human right.

Smart Grid Interoperability Panel or SGIP is an organization that defines requirements for a smarter electric grid by driving interoperability, the use of standard, and collaborating across organizations to address gaps and issue hindering the deployment of smart grid technologies.

<span class="mw-page-title-main">Home energy upgrades from public utilities</span> HVAC and power improvements to residences offered by service providers

Home energy upgrades from public utilities are added home energy efficiency and renewable energy features planned or installed by public utilities. Help from a public utility can make it easier for a homeowner to select, install or operate climate-friendly components. The utility might assist with coordinated use of utility-supplied energy, building features, financing, operating options and neighborhood supplied energy.

Energy efficiency, or efficient energy use, describes an optimization of the power requirements and environmental impacts of energy systems. This includes actions taken by a governing body to decrease power use over an entire power grid, or actions taken by individuals to make their energy use in their house less wasteful. It is also one of the easiest and most cost effective ways to fight climate change and air pollution.

References

  1. 1 2 http://www.eei.org/about/members/uselectriccompanies/Documents/memberlist_print.pdf Archived 2019-08-17 at the Wayback Machine [ bare URL PDF ]
  2. "Secretaries of Energy". Energy.gov. Retrieved 2024-04-09.
  3. Frazin, Rachel (2023-08-16). "Trump-era Energy secretary to lead electric utility lobby group". The Hill. Retrieved 2023-08-18.
  4. Riley, Kim (2017-12-22). "Electric utilities come out as winners under GOP-led nationwide tax reform". Daily Energy Insider. Retrieved 2018-01-05.
  5. 1 2 3 "Energy Department and Edison Electric Institute Sign Agreement to Advance Electric Vehicle Technologies." U.S. Department of Energy, June 8, 2016. Accessed August 19, 2016.
  6. "Cyber & Physical Security". www.eei.org. Retrieved 2018-05-02.
  7. "EEI Statement on National Cyber Strategy". eei.org. Retrieved 2018-09-24.
  8. Johnson, Tim. "The Forgotten Island: After $3.2 billion, but will Puerto Rico's grid survive another storm?". chicagotribune.com. Retrieved 2018-09-24.
  9. "EEI Applauds Passage of FAA Reauthorization Legislation for Drones." Transmission and Distribution World, July 20, 2016. Accessed August 19, 2016.
  10. "EEI, NRDC outline 21 clean energy policy recommendations in statement to NARUC - Daily Energy Insider". Daily Energy Insider. 2018-02-16. Retrieved 2018-03-07.
  11. 1 2 "Rooftop Solar Dims Under Pressure From Utility Lobbyists." New York Times, July 8, 2017.
  12. 1 2 "EEI Launches Industry-Wide Environmental, Social, Governance, and Sustainability Reporting Template | Markets Insider". Business Insider. 2018-08-27. Retrieved 2018-08-30.
  13. Groom, Nichola; Volcovici, Valerie; Volcovici, Valerie (2023-08-01). "Top US utility group opposes emissions plan for existing gas plants". Reuters.
  14. Stokes, Leah C. (2023-08-05). "Opinion: The terrible climate hypocrisy at the top of Southern California Edison". Los Angeles Times.
  15. "Edison Foundation." Archived 2016-07-26 at the Wayback Machine Edisonfoundation.net, 2016.