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American Electric Power CEO Nick Akins on the role of coal as part of the U.S. energy strategy and the impact of regulations.
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President Obama so called all of the above energy policy don't you love that.
It didn't include -- some folks think it's still above the while the president is them at a slight adjustment to his website the EPA's heavy handed regulations continue to just -- industry.
EPA administrator Lisa Jackson recently said the EPA's not to blame the coal industries hardship saying quote.
The problem for -- right now is entirely economic well no one knows more about it than their Asian presidency -- American Electric Power.
It's the largest consumer Obama -- in the country.
Good to have you right to be with -- but let's start with Lisa Jackson she says -- own damn fault.
What do you think.
Oh I think that's absolutely -- We have a situation in the fuel use act back in the seventies we can use natural gas we were told to put coal in place -- put coal in place.
And there are these -- 30405060.
Year investment so it's something that they we've taken seriously -- produce considerable benefits for customers.
Produced benefits.
Among the benefits for just about 40%.
Of the countries elect our generation coming from all.
For your company.
What percent is it is Coleman and one other sources are your line.
We're about 65% -- we have about 40000 megawatts of generation.
Spread out over eleven states and 25000 megawatts of that is is coal -- capacity.
We're in the process of building -- new -- super critical.
Kohl argued which is the most efficient -- -- Jackson now that she knows that yet.
And but -- it has to be a future for coal because we need everything and has to include coal because that it's an indigenous resource that's plentiful.
And low -- -- and can you generate power.
It's with coal without polluting.
Without harming the -- the water.
But the fact of the matter is the years clear this ever been on the water's clear that's ever been we spent seven point two billion dollars in the last ten years wouldn't need new environmental control equipment on our plants we've reduced emissions by over 80%.
Now we're gonna spend another six to seven billion dollars to reduce the -- fifteen to 20% so.
There's a sizable.
Activity going on to reduce the emissions footprint of -- part -- Real you're utility will others be able to continue to use coal given where we are with the regulatory environment and where it's -- Simply put I mean are you going to be able to use -- in the decades ahead.
Well certainly Colby minimize there's no question about it the threshold level were retirements of coal fired capacity is becoming greater and greater.
We have to maintain some call capacity.
But as far as new coal capacity.
The picture right now because there's rules have been.
-- that in place that the really require carbon capturing storage for future capacity that's difficult to do particularly when commercial scale has been proven we're.
Obviously moving toward natural -- other forms of fuels -- It would be a -- whether it be ethanol whatever it be.
In addition to natural gas.
How much is it does Akashi to convert to those right now at least war cost -- Well -- cost that's on the order of ten to 35% increases.
To customers as result of switching these fuel sources and that's considerable given you have to retire existing capacity prematurely.
And replace it with new capacity.
Positions -- thank you for being here.
-- your comeback I would like to continue this conversation I was only focus on.
-- our friends it to fuel freedom put it on two issues so one is our generation and the others transportation.
Both components of what we general -- -- energy.
Our crisis in this.
