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American Electric Power CEO Nick Akins on the impact of EPA regulations on energy companies and efforts to transition from coal to natural gas.
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Well let's talk first of one of the problems that you face and while.
While on the one -- -- EPA has come down.
Very hard on energy companies how many jobs have the new EPA regulations cost your company.
You know costs in the -- -- 600 jobs if we shut those down.
And in the -- impacts of those jobs in the service industries that support our power plants could be in the thousands.
Actually there's estimates nationwide.
Have around one point six million jobs affected as result of these rules that are coming about in mid December.
Your predecessor Mike -- didn't like -- like the regulations much either but he was also a scientist I know you're an electrical engineer from Louisiana Tech but you look at some of this and say alright.
This is what it is let's get around it somehow let's work through it I mean is there a possibility away where you guys -- very much at the forefront of working on carbon sequestration projects -- set -- That you -- look at the -- are we'll find a way to live with us.
-- -- -- who we can't live with it.
Obviously we have to make adjustments and we'll have to make serious adjustments so that we have to shut down generation is gonna impact our customers the costs our customers.
What we're saying is we support the Clean Air Act.
We support the emission reductions we just can't do it within the timetables that the EPA is prescribing it can't physically get done so in the absence of that.
We would do what we can do deer in that timeframe and then have to shut down generation until we could get to that point.
And you're talking about a -- under 35% increase in rates because all this generation has been shut down at one time.
It just makes no sense in from a physical standpoint.
To get these projects done.
To get the work force requirements associated with them and also the reliability impacts of the system -- has serious impacts not only on the system the electric system itself.
But our customers and that's something that we're very serious about getting through that process.
It's nick let's talk about -- makes a lot of sense and that is moving more towards natural gas.
That we have a lot of natural gas here we get -- -- at least partially off of the oil sheiks.
It would it it burns block -- that I -- how much is your company doing in switching from coal to natural gas.
I think there's a natural transformation that's occurring in the resource portfolio of this industry and natural gas is the key to that.
Three years ago we weren't even talking about it but but the but today -- -- -- -- -- the shield gas activity in the geographic footprint of those -- gas placements.
It's important for us to take a look at that and we are -- we are pre bring in new natural gas spark capacity on line as we speak and we're planning to build new capacity.
-- natural -- -- capacity is in the future so it's important for us to make that transformation.
In irrational.
Viewpoint going forward and certainly natural gas is gonna be that that key to the future.
Mickey does get a lot of incentives tax breaks -- working on projects such as leave the carbon sequestration of the -- vs make things cleaner.
It you know I guess it's just a question that I have where where you say OK so your -- your criticizing some the government.
Yet you do take the incentives in the tax breaks from the government is sure happy medium somewhere in there where you can go you can meet with the president you could say.
Here's how we can both live together.
Absolutely.
When we feel really we need -- -- associated with large demonstration projects like the -- -- like the carbon capture and storage project.
And in fact are Smart grid application that were using were using governor of government funds for that as well.
So I definitely gets my he's like nick is that that while there are -- obvious complaints you don't wanna lose employees and you don't wanna move from what has been such a huge business with coal.
The government is giving you taxpayer money to help move to the next stage.
That's right and and really we need to focus on preparing coal.
For the future.
As a part of the portfolio going forward we need everything we need all sources it's important for -- to keep -- in the picture but the same time address those other areas like natural gas and renewables and Smart grid efficiency top technologies in the future otherwise the US can't supply the demand is coming up in the future well we'd like to keep you in a picture here Fox Business nick -- is a pleasure -- Welcome -- it says chief of your organization please come back and see as soon okay.
Thank you David thank you live American electric.
