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American Electric Power CEO and President Nick Akins how the company is investing and how new energy-efficient technology is impacting consumer demand...
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Think again.
Manufacturing alone uses a quarter of the nation's energy.
And it uses 18%.
Less energy than it did back in 1998 that's just that's manufacturing so power utilities dealing with the situation.
-- watching -- electricity more targeted out of Fox Business exclusive from Columbus, Ohio is American Electric Power CEO president nick -- isn't.
All Mike gosh I so what -- -- -- happy new year happy -- -- make up I if you saw our house every every outlet has.
50000 things plugged into it whether it's the Diaz sort of what -- the Soto -- that nothing is open to.
And -- electricity demand looks like it's down -- why is this what's going on.
I think certainly the economy has a big part of that because.
As the economy -- taken a downturn more people are thinking about how they use their appliances and certainly years the efficiency of appliances also improved.
But that the usage has been down primarily because.
Of the economy we believe -- how much -- it remains to be seen.
As the economy -- produce.
How how many people actually turn off appliances when they leave the room -- are actually how many.
How many -- chill -- children less than 25 years old without their own.
We don't know at this point but but certainly it has an impact it is certainly something that we have to adjust he was an industry.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Well I think there's there's -- do that it becomes.
Different business model associated with the energy efficiency in that we're not having to build large central station generation.
To accommodate new demand we need to think about optimization.
And also keep in mind this industry needs to spend two trillion dollars in the next two decades just don't refurbishment of the gray.
So that's why we're investing in transmission investing in distribution and also investing where we need to from an environmental perspective related generation so.
By just investing in -- infrastructure our business will continue to grow.
Right at -- up by the way just -- you know we're looking at a stock chart and and you're you're not at the highs of the year but you're certainly looking closer to a high of the 52 weeks than the low which is certainly good sign that people look at this and say look.
You have a good dividend what -- your yield is about four point 3% that's attractive.
But -- to which this and we showed a great bar chart two -- -- -- put that back up again and it does show that the usage of electricity is declining for whatever reason next.
But does that mean that you will have to do -- your February investment day.
Warned that -- or at least tweak your earnings guidance.
No I don't think so I think we're currently we haven't had -- book it will provide guidance in February.
But we see we see continued -- improvement.
In the economy mainly it's been driven by the economy where the industrials have been down.
Primarily because of the mining in the primary metal side of things where you see followed bills are starting to pick out.
All -- gas activity there's an energy Renaissance our particular territory in eleven states that we serve.
Both differ significantly take off so so there's opportunities there that will continue to take a close look at it project in this and of course as these 25 year -- me about the house.
And you get jobs.
-- creation of new customer counts associated with that so -- remains to be seen exactly what the true impact of energy efficiency -- -- As we project load increases in the future have typically energy efficiency accounts for about two to 3%.
Act kick the 25 year old -- there should be out by the I think that's what I left.
You guys are huge.
User of call you you certainly is a lot of coal in America factor in Europe believe that the biggest user of coal.
Consumer of coal when it comes to -- utilities what happens their calls had a tough here does it help of coal becomes cheaper for you.
I think -- and clearly it will be existing generation that exists for for -- coal fire generation.
But keep in mind with the EPA requirements were were retiring generation the fourteen of fifteen timeframe the older.
Less efficient coal fired units and vascular -- further reduce the amount of coal consumption and we expect obviously with natural gas showplace for that to continue to increase.
-- that's gonna make it to to the sweet sixteen.
Is set up well I'm not I think I think they will and and obviously the twelve and O -- did a pretty good job this past year.
-- good to see a happy new year.
Thanks -- -- Pickens is American Electric Power CEO and president sounding an optimistic tone even though.
Energy is certainly am not exactly.
Going up all right we've got the Dow Jones industrials up about forty points coming up the CEO of -- football company Buffalo Wild Wings gotta -- this.
