EEI Wall Street Briefing
February 9, 2022

Executive Summary

EEI’s member companies—America’s investor-owned electric companies—are committed to getting the energy we provide as clean as we can as fast as we can, while maintaining the reliability and affordability that our customers value.

Thanks largely to the leadership of EEI’s member companies, carbon emissions from the U.S. electric power sector are nearly 40 percent below 2005 levels. At the same time, 40 percent of our nation’s electricity now comes from clean, carbon-free sources, including nuclear energy, hydropower, wind, and solar energy.

Delivering a carbon-free energy future is perhaps the defining challenge of our time and is one that will require extraordinary, concerted effort from electric companies, technology partners, policymakers, and many other stakeholders. Fortunately, our member companies—and our industry’s extraordinary workforce—never back down from a challenge.

Our industry has some of the most dedicated, talented workers anywhere. No matter the threat thrown at them—extreme weather and record-setting storms, wildfires, cyber-attacks, and more—they accept these challenges.

At the same time, EEI’s member companies continue to make record investments of more than $120 billion each year to make the energy grid smarter, stronger, cleaner, more dynamic, and more secure.

EEI’s member companies are proud to provide America’s resilient clean energy and to be leading the transformation of energy. Even more than investments and technologies, our companies’ workforce—and our companies’ mindset—are at the center of this transformation. Our commitments—to enhancing resilience, to leading on clean energy, and, above all, to serving our customers—are on display every day.

For us, the path forward is clear—and the path forward is clean.

For us, the path forward is clear–and the path forward is clean.

#Committed2Clean®

Leading on Clean Energy

Reducing emissions is just one part of our strategy. Equally important is the work we are doing to change our nation’s energy mix. Over the past decade, we have seen a significant change. The amount of clean energy in the mix is only going to grow as EEI’s member companies continue to make unprecedented investments in renewable energy that are leading to record deployments of wind, solar, and other technologies across the energy grid.

In 2020, nearly 28 gigawatts (GW) of renewable technologies went online in the U.S.—a record deployment by a wide margin. Early data show that renewables also had a banner year in 2021, making up 20 percent of the energy mix for the first time. Preliminary estimates indicate that 2021 also was a record year for energy storage, with nearly 5.5 GW deployed.

Wind, solar, and energy storage can get us much of the way to a carbon-free future. Using an energy mix that includes nuclear energy and natural gas will help us get there faster and more reliably.

Our Clean Energy Vision(Open external link)

Enhancing Resilience

Investing in Smarter, Stronger Energy Infrastructure

EEI’s member companies have invested more than $1 trillion over the past decade to build smarter energy infrastructure and to integrate new generation into the energy grid. These investments are critical to achieving our clean energy goals. They also help to protect the grid from extreme weather and cyber-attacks; help predict, mitigate, and prevent outages; and help companies restore electricity faster when outages do occur.

Over the past year, EEI, our member companies, and our industry were met with another active storm and wildfire season. Working through the CEO-led Electricity Subsector Coordinating Council (ESCC), EEI coordinated closely with government partners at DOE, the Department of Homeland Security, and the National Security Council to ensure that industry and government efforts were aligned.

Through the ESCC, EEI and our member companies also continue to coordinate with our industry and government partners to ensure that grid resilience and cybersecurity remain front and center, as always.

Our customers are at the heart of everything we do as an industry. Despite levels of inflation at 40-year highs during the past year, electric companies continue to focus on providing the reliable and affordable energy our customers need and expect. And, electricity continues to be a great value for our customers. Electric companies’ focus on maintaining affordability was evident, as only 1.28 percent of Americans’ personal consumption expenditures in 2021 went toward electricity bills—the lowest annual rate in more than six decades.

Grid Security

Maintaining Our Financial Strength

Our industry remains the most capital-intensive industry in America. For the tenth consecutive year, we expect another industry record, with total capital expenditures projected at $143.3 billion in 2021.

The industry’s average credit rating remained at BBB+ for an eighth straight year in 2021, and the industry extended its long-term trend of widespread and consistent dividend increases. A total of 32 companies or 82 percent of the EEI Index companies increased their dividend in 2021.

2021 Industry Financial Highlights