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Wall Street Briefing  
EEI Wall Street Briefing
February 5, 2020, New York, NY
America’s Energy Future: Cleaner, Smarter, Stronger
Electric Power Industry Outlook
A Message From EEI President Tom Kuhn

EEI and our member companies—America’s investor-owned electric companies—continue to lead a profound transformation of America’s energy. This transformation is long-term, but its positive dividends—for customers, communities, employees, and investors—are abundantly clear already.

Our dramatic reductions in carbon emissions; our broad deployment of renewables and of smarter energy infrastructure; the physical and cybersecurity protections we are implementing—these are three unmistakable examples of the enormous strides EEI’s members have made, just over the past decade.

The three main pillars that uphold our vision and guide our work remain in place: maintaining the steady and strong transition to clean energy; modernizing the energy grid to make it more dynamic, more resilient, and more secure; and developing innovative customer solutions and delivering even greater convenience and a better customer experience.

Our goal is to give our customers an energy future that is cleaner, smarter, and stronger than any they have known before.

The story we are so proud to tell about our ongoing transformation is better than ever, and we are excited about the opportunities before us to advocate for policies that ensure safe, reliable, affordable, and clean energy for our customers today and long into the future.

Prepared Remarks
Presentation
Our goal is to give our customers an energy future that is cleaner, smarter, and stronger than any they have known before.
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A Cleaner Energy Future
Carbon Emissions Down ~30%
From 2005 Levels
As of year-end 2019, our industry’s carbon dioxide emissions were approximately 30% below 2005 levels—the lowest level in 3 decades.​
Nearly 40% of Electricity
From Carbon-Free Sources
Nearly 40% of all U.S. power generation comes from carbon-free sources, including nuclear energy and hydropower and other renewables.​
More Than 1/2
Wind and Solar
Over the past eight years, more than half of new electricity generation capacity was wind and solar​.
Demonstrating Positive Progress and Continued Commitment

Our customers and our investors have made it clear that they expect the energy we deliver—and they use—will be increasingly clean. EEI is proud to say that we are, as an industry, making significant strides in carbon reduction, deployment of renewables, and more. In fact, our clean energy leadership puts our industry far ahead of all large industrial sectors.

To date, dozens of EEI member companies have announced long-term carbon reduction goals, and 15 companies have set a net-zero by 2050 or equivalent goal. In 2019, we directed significant attention to highlighting our clean energy leadership and carbon reductions and to reinforcing the message that our industry is synonymous with America’s clean energy transformation.

Across the industry, there is strong evidence of our commitment to get as clean as we can, as fast as we can, while keeping customer reliability and affordability front and center as always.

Our Clean Energy Vision

A Smarter Energy Future
Nearly $1 Trillion
Invested in Smarter Energy Infrastructure
Since 2010, EEI’s member companies have invested nearly $1 trillion to build smarter energy infrastructure and to integrate new generation.​
Flat Average Bills
Since 2010
Over this past decade of record investment, EEI’s member companies have kept growth in electricity prices below the level of inflation.​
98 Million+ Smart Meters
Installed in the United States through the end of 2019
Smart meters have been the foundation for today’s customer-facing, modern energy grid.​
Investing in Smarter Energy Infrastructure
Our industry long has been the nation’s most capital-intensive industry, and, over the past decade, we have sustained a record-high level of capital expenditures. Since 2010, EEI’s member companies have invested nearly $1 trillion to build smarter energy infrastructure and to integrate new generation. These investments continue to be central to our vision of a cleaner, smarter, stronger energy future.

Our significant investments in the energy grid ensure that our customers receive the electricity they need, when and where they need it, safely and reliably. A robust transmission system also is critical to helping our industry continue its clean energy transformation. Investments in the energy grid increase the integration of clean energy resources, power electric transportation, and facilitate the adoption of a broad array of smart technologies to better serve our customers.

On the distribution side, our investments in smart meters have been the foundation for today’s customer-facing, modern energy grid. As technology advances, the possibilities continue to grow. EEI’s member companies are harnessing technology and data to provide clean energy, energy management services, EV charging, and more—and we are providing an increasingly seamless customer experience.

It is vital to note that, over this past decade of record investment, we have kept growth in electricity prices below the level of inflation.

A Stronger Energy Future
$64.7 Billion
Grid Security Efforts
According to projections, EEI member companies invested $64.7 billion in 2019 to enhance the energy grid and to further support grid security efforts.
Industry-Government Partnership
Electricity Subsector Coordinating Council (ESCC)
The ESCC is critical to sharpening our security posture and to advancing our preparedness across a host of fronts.​
Addressing Wildfire Risks
Industry Priorities: Mitigation, Detection, Response & Recovery
Our industry and government partners are elevating the wildfire risk mitigation and response efforts to a national level through the ESCC.​
Enhancing the Focus on Resilience
Thanks to the tremendous leadership of EEI’s member companies—and of others—the Electricity Subsector Coordinating Council (ESCC) is now the vanguard of our industry’s approach to safeguarding the energy grid. Every day, the ESCC is critical to sharpening our security posture and to advancing our preparedness across a host of fronts.

The past decade brought us record-breaking storms, from Superstorm Sandy to Hurricanes Dorian, Florence, Harvey, Irma, Maria, Michael, and so many others. Every storm and natural event creates new challenges. We are committed to learning from these events and to applying their lessons to make our industry’s response stronger, smoother, and more efficient than ever.

In response to the growing threat of wildfires and their potential impact to the life, health, and safety of communities, our industry and our government partners are elevating the wildfire risk mitigation and response efforts to a national level through the ESCC.

The ESCC and our National Response Event framework are vital in the face of storms and wildfires, and they are key to other aspects of our industry’s focus on security and resilience. We continue to leverage the ESCC to deliver even more protections for our customers and for the energy grid. A central lesson of the last decade is that, whenever natural or man-made risks and threats arise, our industry stands up to the challenge—and, where necessary, we create robust and effective solutions that meet the needs of our customers and communities.


Financial Highlights
Our industry remains the most capital-intensive industry in America. For the eighth consecutive year, we expect another industry record, with total capital expenditures projected at $135.6 billion in 2019.

The EEI Index gained 25.8 percent in 2019 and has produced a positive total return in 15 of the last 17 years. The industry produced returns greater than 10 percent in 12 of the 15 positive years and greater than 20 percent in 5 of the 15 positive years.

Additional Resources
February 5, 2020
Press Release
January 2020
EEI Energy Talk
​January/February 2020​
Electric Perspectives Magazine
February 2020
Full Presentation with Appendix

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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 65 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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