EEI > Issues & Policy > Finance & Tax Issues > Wall Street Briefing
EEI Wall Street Briefing
February 7, 2018, New York, NY
Delivering America's Energy Future
Electric Power Industry Outlook
A Message From EEI President Thomas R. Kuhn

Each February, our Wall Street briefing provides a terrific opportunity to reflect on all that we accomplished over the past year on behalf of EEI’s member companies, America’s investor-owned electric companies, and their customers. Perhaps, more important, it allows us to outline all the opportunities and challenges we have before us in the coming year as we work to build and deliver a smarter energy future for America.

If 2017 was a year of change, 2018 is here to remind us that the pace of change is only accelerating. One thing remains constant, however—our industry’s commitment to meeting customers’ needs by building and using smarter energy infrastructure, by providing even cleaner energy, and by creating the energy solutions they want. This commitment guides us, and it also provides opportunities to collaborate and make progress on key policy priorities.

EEI is celebrating our 85th anniversary this year. This is an important milestone in our history and a true testament to Power by Association. Strong collaboration with the financial community is at the core of our success, and we look forward to continuing our dialogue throughout the year.​

Full Remarks
More than ever, we must remain focused and excited about the changes our industry is facing and about our future. It is up to us to build and deliver a smarter energy future for America.​

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The Electric Power Industry: Vital to America's Economy
$880 Billion

The industry contributes $880 billion annually to U.S. GDP or 5 percent of total GDP.

$100 Billion+
Per Year

The industry invests $100 billion+ per year to build a smarter, cleaner, and more resilient energy infrastructure.

7 Million+
American Jobs

As a whole, the electric power industry supports more than 7 million American jobs, equivalent to about 5 percent of all jobs in the United States.

Tax Reform

Not only was final passage of the Tax Cuts and Jobs Act in December a top priority for EEI and our member companies, it was a win for electricity customers and for investment in critical energy infrastructure. Importantly, the legislation maintains the federal income tax deduction for interest expense for regulated electric companies and the federal income tax deduction for state and local taxes; provides for the continuation of normalization, including addressing excess deferred taxes resulting from a reduction in the tax rate; and keeps dividend tax rates low and on par with capital gains.

While the tax legislation has been signed into law, implementation will require significant work. We plan to act quickly and to have all our member companies involved.​​

EEI: Passage of Tax Reform Bill a Win for Electricity Customers

In President Trump’s State of the Union address, we heard that infrastructure is one of his top priorities in 2018. We expect the Administration to unveil its infrastructure proposal in the near future. The proposal likely will focus on permitting and siting reform; federal seed money to help stimulate state and local, as well as private, investment in infrastructure; and assistance for transformational infrastructure projects. Several congressional committees already are working to develop infrastructure legislation.

From a policy standpoint, we fully support streamlining and expediting the process for permitting and siting energy infrastructure—including transmission, natural gas facilities and pipelines, hydroelectric facilities, and renewable energy facilities—to ensure that energy can get where it is needed, when it is needed. We also support better electric-natural gas coordination. And, we believe it is important that infrastructure spending help support development of smart communities and electrification of the transportation sector.

Smarter Energy Infrastructure Powers America's Homes and Businesses
Harnessing the Potential of Energy Storage
Electric Companies Lead on Clean Energy
CO2 Emissions Nearly 25% Below
2005 Levels

As of year-end 2016, the industry's carbon dioxide emissions were nearly 25 percent below 2005 levels.

More Than 1/3 of Generation
From Zero-Emissions Sources

​More than one-third of all U.S. power generation comes from zero-emissions sources, including nuclear energy, as well as hydropower and other renewables.

Own 64% of Solar Generation
in the country

​Electric companies generate virtually all of the wind energy, geothermal electricity, and hydropower—and own 64 percent of the solar generation—in the country.

Financial Highlights

The electric power industry is the most capital-intensive industry in America. EEI’s member companies invest more than $100 billion each year to build smarter energy infrastructure and to transition to even cleaner generation sources. For the sixth consecutive year, we expect another industry record, with total capital expenditures projected at $122.8 billion in 2017. Industry capital expenditures, which have nearly tripled since the cyclical low in 2004, continue to be an important growth engine for our industry. Our investments create jobs and make the energy grid more robust, more dynamic, and more secure for all customers. ​

Q4 2017 Industry Financial Highlights
EEI Wall Street Briefing Presentation
Customer Solutions
EEI member companies continue to change the way they provide services to customers and to individualize those services—for the large customers (like data centers and major corporations) that want to use renewable energy; for the residential customers who want to manage their energy use using connected devices and through web-based platforms; and for the major cities that want to be more sustainable and reduce their carbon footprint.

We are seeing tremendous opportunities in the smart community movement. A smart grid is the foundational piece in building a smart community. Electric companies are working with their communities today on projects that deliver benefits to residents across a number of areas.

As cities and communities seek smart, sustainable mobility solutions, electric transportation is a critical component. Already, more than a dozen EEI member companies together are investing more than $350 million in customer programs and projects to deploy charging infrastructure and to accelerate electric transportation.​

Examples of Smart Communities in Action: Electric Companies Play a Leading Role
IEI and EEI: Plug-In EV Sales Forecast
Storm Recovery
Last storm season was truly historic—and was met with an historic response by EEI’s member companies. During last year’s hurricane season, EEI’s member companies mounted an army of thousands of workers from all over the country to restore power to the millions of customers impacted by Hurricanes Harvey and Irma.

In early November, EEI and its trade association partners (the American Public Power Association and the National Rural Electric Cooperative Association) received a request from the Puerto Rico Electric Power Authority (PREPA) to support power restoration efforts on the island following Hurricane Maria.

Since the request for mutual assistance first was received, EEI and its member companies have been working in partnership with APPA and NRECA, as well as with PREPA and our federal government partners, to supply technical expertise, materials, equipment, and resources to the island. A team of electric company storm response experts has been on the ground since November and is working closely with local officials, FEMA, and the U.S. Army Corps of Engineers.

Following the deployment of nearly 1,500 lineworkers and support personnel in January, the total number of power restoration workers on the island is now more than 5,500. The entire industry has been involved in the mutual assistance response—companies from across the country have responded to the call for help.

Fox News Special Report: Puerto Rico Restoration
Industry Mutual Assistance Response Is Accelerating Power Restoration Efforts
Additional Resources
February 7, 2018
EEI Press Release
January/February 2018
EEI Electric Perspectives Magazine
Electric Companies Drive Smart City Initiatives
January 2018
EEI Energy Talk
Monthly E-Newsletter from EEI
February 2018
Full Presentation with Appendix
January 2018
Smart Are Communities Powered by Smart Connections
December 2017
Transmission Investment: Revisiting FERC's Two-Step DCF Methodology for Calculating Allowed Returns on Equity
August 2017
Powering America: The Economic and Workforce Contributions of the U.S. Electric Power Industry

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The Edison Electric Institute (EEI) is the association that represents all U.S. investor-owned electric companies. Our members provide electricity for about 220 million Americans, and operate in all 50 states and the District of Columbia. As a whole, the electric power industry supports more than 7 million jobs in communities across the United States. In addition to our U.S. members, EEI has more than 60 international electric companies with operations in more than 90 countries, as International Members, and hundreds of industry suppliers and related organizations as Associate Members.

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