You're watching...
Michael Morris, chairman and CEO of American Electric Power Company, weighs in on today's announcement of John Bryson's nomination for U.S. Commerce S...
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
All right somebody's it is clear to new commerce secretary announced a hundred years ago -- the day today that Titanic.
First set sell after being -- -- its Belfast Ireland plant.
I'll leave it at that I don't know what that intrigues me but it just does.
I'm not a my fear is that John Bryson is merely the latest commerce cruise director narrowly leading us to an -- With me now Michael Morris Michaels the chairman and CEO.
Of another very big easily -- American Electric Power.
I don't mr.
Bryson of course is a former utility -- here on very big on some -- has technologies to be that the president is keen on was that the reason.
-- -- surely could have been Johns.
Pretty widely known in our industry and actually throughout corporate America is sat on the board of Boeing and the Disney company -- very active in the early.
And our DC creation.
Highly it is well respected good -- old -- of a solar and green well clearly -- out of Europe.
-- that could well have been the reason I'd like I think also that's on the new business understanding but.
You know utility executives were all in economic development he was in the huge economic development throughout all of this -- it socal Edison.
He had previously been that -- chair of the public utility commission in California so wells.
A guy like that no doubt.
Helping boost commerce I guess there is -- asked is because it's it is in large part.
And recognition of his interest in the same things the president suggested it like three technology and solar and all these other alternatives.
And that really hasn't dramatically move the needle on jobs which I guess ultimately should be a commerce secretary's goal.
Then there's anything the change.
Well that's a good question only time -- tell us what we get from that John is also I think you secretly entered -- -- -- -- He's very very on electric vehicles we all think that's a -- ago we think that that may create some jobs in this country -- -- -- -- what -- -- -- to -- Atlanta.
Armed.
Do you think that's going by the -- don't plug and I think slow but it to developing the in the current fleet although the government bought a lot of on the currently it's all sold -- were all prepared for it.
One of the real issues is the uniqueness of if you've got the time -- is plug it into a wall socket in the garage and an almost New Yorkers don't have garages but.
Most people in the country do you think Americans will -- behind that will accept them.
I think there's always the need to get at quick charge and that's going to be a real issue battery technology we'll continue to improve.
The cars are more and more electric today almost everything other than the production engine it's it's.
As a technology need to come to them or did they need to create to McCain.
For the technology but I mean she gets apparel and oil and gas prices energy prices in general get sobering evidence present you move to these things and we're not there it.
We are we surely aren't there yet but -- there's another whole matter this is like my good friend Boone Pickens and his plan we -- natural gas vehicles for the -- wheelers some electric some natural gas for.
Passenger vehicles we can make a difference in our reliance on imported oil and.
You've been facing the same rising cost of all of your utility brother have I think.
You've been trying to push through horrified rate increases.
Of little more than a year -- -- it raised concerns among.
Your your customers.
Whether you were down -- not -- that was an intention but the perception is utilities don't need to rate increases.
Wendy's.
Well you use -- over the last handful of years and American Electric Power particularly spent almost seven billion dollars on compliance for the Clean Air Act in that coming forward has -- huge potential impact as well.
Our rates of return on the equity capital invested is controlled by the end state regulator.
And we're going through that issue in Virginia and West Virginia and and we look at that and demonstrate.
Choose our customers have a lot of one on one meetings as much as we can do with our large industrials commercial -- And the rate increases -- getting approved so -- they -- make a compelling case.
But I -- -- -- then when people are faced with that for whatever reason you talk about just comply with the clean there -- hundreds of complying with the reality of soaring commodity costs across the entire is there.
On they have to make some allowances when.
And we're seeing we're we're actually seeing so industrial demand is following worldwide demand.
Commercial demand is picking up some when you look a year over year eleven to ten.
Residential demand is flat to down not only our company but in some other companies and that is an issue I think.
That says -- the household budget is being pushed by gasoline by commodity prices.
You know if you go -- -- carp 6070 dollars that's an eye -- You may now come home and say hey let's just watch twenty the united said -- -- -- having kids get off the Xbox or whatever it is that -- -- doing I think people are at that.
Residential and how much does that say verses -- say not running cutting back on the -- -- Well it clearly air conditioner or electric load during the heat cycle because the furnace -- -- -- actually those -- the big users without question.
We haven't seen that we don't see a lot of weather impact when the weather's hot and muggy like it is across much of the country -- -- numbers have been bid.
And demand stays there I think it's -- -- they might set it down some but.
Two or three days of 7080 degrees at night people in the news here conditional question is you.
Sense though that the set the same type of allowances they have to make in the face of four dollar more -- -- they're doing now.
With their electricity.
Why I don't think you've gotten to a price point with -- electricity we take actions Phyllis so big we've got to react to -- our average customer pays 8090 dollars a month.
That's probably one of the smallest -- they get at their house.
But is something they're aware of and it is something they can construct -- -- -- -- just gonna have worse and it could get -- -- part of it would you then -- Well what we're trying to say the Environmental Protection Agency through both legislature and as many times we can talk about the issue is.
If all of the five things that they're working on four of them having to their one having to have water come at the same time in a very short period time.
Will all be out retrofitting our fleet at the same times -- -- huge cost pressures because and it'll be a seller's market.
For engineering for welders for plumbers for -- -- Everybody if you stretch that out.
Just a few years you can get there with a much more balanced approach to it unions have been in good support of that whether it's and we're beginning to -- until now.
It really is that your industry -- back -- no pun intended route and -- and price and getting picked to be commerce secretary it is an acknowledgment.
The utilities are probably one of the few industries.
We're of the administration confined.
I don't know it favoritism but at least more support than other industries -- riot frequently you see that that's true is the environment.
More favorable.
-- -- -- -- If I worry ending a tremendous amount of pressure from the EPA there's no question about that one -- one game one also absolutely right you see some of that on.
Regardless I feel about this guy coming into commerce what is your sense me.
Economy then he's going to have to grow trying to shape effects.
Challenged.
Everyone I talk to everyone I talk question on the board of -- sit on the board of the Hartford.
Everything we look at it tells us that it's slowly -- -- moving forward but there are some -- both -- biggest -- in Ireland and two minutes -- it was -- recent statistics tell -- we may be concerned about that you're look at there reevaluation -- first quarter GDP.
That tells us it's a whole lot slower than we saw for the -- in the twenty if you think it's a double dip -- -- the recession slow.
I clearly a possibility -- of them.
What are the -- Not an odds maker.
You feel better or worse -- somewhat price -- commerce.
Well I know impression that I know he's a person of energy very bright I am encouraged by that.
-- don't expect higher.
Energy prices at -- intimacy that worldwide.
So whatever dip we've had this is temporary.
Clearly we're looking at oil going on the red October and you're right could -- -- bond market's awful.
It is nice to be in the business for and I gotta tell -- that's very exciting time in the energy business worldwide.
You and -- Peruvian drivers but -- this way or.
