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American Electric Power CEO Nick Akins argues the aging river transportation system is adding costs to consumers.
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I didn't think that -- -- Sorry aging infrastructure is disrupting waterway systems which are used to move a 180 billion dollars worth of goods each year.
Adding costs that are passed on to consumers here to tell us just how bad it's gotten what needs to be done.
Is nick -- CEO president of American Electric Power nick thanks so much for joining us.
Come Melissa thanks remind me.
You know -- it's amazing as I think most Americans do not think about.
Water ways within the country that that carry goods is sort of doesn't cross your mind but as we said almost 200 billion dollars worth.
You know whether it's -- going to one of your call plans which you know I visited or.
You know whether it's things that make steel all almost anything a lot of things travel why is that because it's cheaper than traveling by trailer truck or why -- -- so dependent on the system.
So is definitely cheaper more efficient.
16 of the total fleet total I'm out of material moved in this country is new goes -- -- system.
And is so much more efficient because one.
Fifteen to and -- fifteen now barge -- that we do is equivalent to over 200.
Tops of -- real car arrangements.
Also we talk about other tops a fleet transportation.
This is more environmentally friendly as well also a substantial.
Substantial advantage when you talk about river -- transportation.
Yes so it's not just you know raw materials a step for energy it's like so many of the components and things that go into everything that we use every day -- you see these systems are falling apart how about the problem.
Yes pretty bad because we've had over the last ten years the amount of outage hours on these locks and dams on the river system.
Have increased four times you're over 80000 hours of outages and it really cost a lot in terms of transportation cost to all my customers.
When you look at that that kind of transportation system and the outage time we have a -- outage -- been over a year.
In this cost is over -- point five million dollars.
Just over the last two years has been for the AP system eleven and a half million dollars so.
Just that transportation cost alone is considerable when you look at the inefficiencies -- -- so what's your solution act.
Well I think clearly there has to be a plan in place to rehabilitate.
The infrastructure our commerce is only is -- is the infrastructure that supports it.
-- when you look at congressional legislation there is pop -- legislation has been provided Whitfield.
In Kentucky has been one of the sponsors and it is Bob -- and have a congressman Illinois as well.
They -- its focus on a twenty year plan to revitalize the river system and when you have that kind of activity in place.
It could certainly bode well for future commerce in this country.
What's the mechanism I mean would you do this through do you want to raise taxes to fund this are you are you looking at raising energy rates to -- it.
I had to get the money.
No it's it's -- about waterway usage fee essentially so -- be funded by the water -- usage and also.
There's an expectation that the corps of engineers would have their budget improved to support the maintenance of the facilities.
Which that's woefully inadequate -- half of what was needed gas so both the combination of the two of those are really bring that system back.
Yeah I mean either way we pay because one way or the other the cost gets passed on to the end user that's just the way American business works that we kind of -- either way but it's an interesting issue nick thanks so much for bring it to our attention CEO of American Electric Power --
