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American Electric Power CEO Michael Morris on the negative impact of increased regulations.
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Pretty good they're also looking -- American Electric Power among the largest generators of electricity we have got more than five million customers across eleven states it's also one of the country's most popular.
Investor owned utilities and joining us now for an exclusive interview Michael -- is chairman.
And CEO of American Electric Power you know Michael last week.
President seems to have caught his own EPA off guard them making some concessions on the ozone.
However the war against whole seem to be going fast and furious and there's some real serious economic consequences of -- But I -- true Charles I think all of us who are called centric and about 25 of the 48 contaminants states could claim that to be there.
Basic fuel supply.
Early worried about the timeline is not so much the Clean Air Act in the in game because we're all in agreement with cleaners good for all of us the issue is.
The timeline that the EPA is now proposing.
Many in this argued when the dates would point fourteen think about twice sixteen is being a bit more reasonable.
The EPA administrator in the final rule went 2012 so we -- -- we must have missed the target of fourteen didn't work sixteen would be -- They go to twelve -- you know our friends and taxes we serve the great state of Texas.
They had never been included in the analysis until the final rule came out for the impact on our customers in Texas our customers throughout the middle west and southwest is really quite frightening.
So how big of a problem is a whole.
Category of regulation if -- to -- get prioritize it in year probably long list of of challenges that you face as a CEO that.
And electric power generation company.
-- -- -- -- I think this is issue number one on a national scale that.
It's very important for us -- the largest transmitter of electricity as well in the United States was important we get a transmission policy that's kind of federal issue number two.
This is clearly federal issue number one how.
Me how does -- upcoming election year.
And the state of the economy how does all of that play into what you are seeing on a regulation landscaping -- I mean does that it it seems to me.
Things could change very very quickly and very very rapidly.
Well indeed they can this is very political -- as you know and this is an issue that.
Clearly grabs the hearts of a lot of folks so there's -- large movement inside of the unions very much in support.
Of what are argument -- -- electric power and that is look if you stretch this out and give us a more appropriate timeline we can get to the same environmental performance.
We can have people working as early as next year on some of the early retro -- but.
If you don't change those time lines and we and many others take our plants offline what that does locally.
Property tax go on support for school systems gone firefighters local police all the things.
That our power plants which are frequently located -- very remote areas provide for the communities jobs are lost.
And ultimately.
I if you saw the headlines and weaker or Germany shuts down the nuclear plants they hope the lights don't go out and of the headline about the United States which which is so unfortunate and unnecessary.
Michael are you mentioned the transmission lines the president has talked a lot about public private partnerships and everyone's saying you know the key really.
To getting us to the next level is upgrading our transmission lines.
Would you be open to a public private partnership to get that done is that something that you -- the federal government to do.
Are you be a amenable to.
But you know Charles it's an interesting question because and senator Reid asked me that about two years ago how much TARP money would you need to federal funding and He was surprised by the answer we need -- all of us have the capacity to raise the capital to do that what we do need however.
Is congressional action that would allow the Federal Energy Regulatory Commission.
To have an overarching authority over where you build the lines and high allocate the cost of building -- -- that's something that.
Natural gas -- have oil pipelines have we don't have that.
In the electric transmission business it's it's part of the history of how we all like being regulated by the states better than the Fed years ago but to that issue because it is and multi state.
Interstate if you -- it lends itself federal regulation.
Michael there seems to be an and correct me if I'm wrong I demonization.
Going on right now of coal of fossil fuel.
Or origins.
The power generation.
Is that deserve it is that what you guys steel is happening rang out because from a public image perspective it seems that that sort of campaign is being waged right.
Now well we surely believe that on and there's no question that when we when we see folks saying.
You know American Electric Power you know how many lives do you wanna agree end before we take care issue of fossil fuels.
Base load generation that keeps the lights on 24/7 it's either going to be fossil fuel coal.
Fossil fuel natural gas or any alternative nuclear power -- there isn't much support today post Fukushima for nuclear power so.
There's no question that there's an issue here in and it's just ill thought through.
The environment over the last four or five decades has gotten cleaner every year.
We burn more coal electricity -- Japan and actually produce more coal electricity over all those decades as well.
The air pollution that American -- -- -- 80% better than it was for decades ago that same progress can happen going forward.
All we're asking for an end to your point being demonized so many people say well -- American -- against the Clean Air Act.
Not true but we're saying is.
If we can get this done by 20/20 and put people to work as early as 2012 want to do that that's why the EI -- whether that's by the boiler makers -- with us.
Lots of others who see this as a very important infrastructure -- we don't need federal funds we don't need federal money.
This is this is an ability that we have all of us who are and that's.
My cause a lot more wanna talk about what we're out of time and I want to thank you for coming on the show Michael -- chairman CEO of American electric appreciate it thank you next time to have you Ronald stay on the topic -- --
