Utility execs fear impact of U.S. policies on profit

Less than half of utility executives support the Obama Administration's plan to make the United States a leader on climate change and are concerned about the impact related policies will have on industry profits, according to a survey.

The study, conducted by consulting firm Capgemini and energy information service Platts, surveyed more than 100 executives in the U.S. and Canadian electric and natural gas industries.

More than half of the respondents, about 54 percent, said they expect the Obama administration's energy policies to have a significant impact on the industry's profitability.

Utility executives were most supportive of the administration's efforts to promote safe and secure nuclear energy (88 percent) set national building efficiency standards (79 percent), promote domestic production of natural gas (77 percent), invest in smart grid technology (74 percent), reduce federal energy consumption (69 percent) and develop so-called clean coal technology (70 percent).

Administration policies executives were least supportive of include a plan that would require 10 percent of electricity to come from renewable sources by 2012 (39 percent), a cap and trade program to reduce greenhouse gases (43 percent), constructing the Alaska natural gas pipeline (45 percent), investing in a clean energy economy to create green jobs (48 percent), and making the U.S. a leader on climate change (46 percent).

John Christens, vice president of Capgemini's energy and utilities practice, said executives' concerns haven't changed dramatically in recent years. Rather, the new administration has pushed many potential new energy and environment regulations to the forefront.

"All of those things have been out there and have been concerns, but this year clearly people consider some or all of those as eventualities," Christens said in an interview. "The concern now seems to be more around, is the federal government going to implement these things in such a way that we stay healthy as businesses."

Uncertainty surrounding carbon regulation and the recovery of related costs through local utility rates were cited as the industry's top two challenges, the survey said.

Related News

Mike Sangster to Headline Invest in African Energy Forum

Mike Sangster to Headline Invest in African Energy Forum

PARIS - Mike Sangster, Senior Vice President for Africa at TotalEnergies, will play a pivotal role in the upcoming Invest in African Energy (IAE) Forum, which will take place in Paris on May 13-14, 2025. As a key figure in one of the world’s largest energy companies, Sangster's participation in the forum is expected to offer crucial insights into Africa’s evolving energy landscape, particularly in the areas of oil, gas, and renewable energy.

TotalEnergies' Role in Africa's Energy Landscape

TotalEnergies has long been a major player in Africa’s energy sector, driving development across both emerging and established markets. The company…

READ MORE

N.B. Power hits pause on large new electricity customers during crypto review

READ MORE

Barakah Unit 1

Barakah Unit 1 reaches 100% power as it steps closer to commercial operations, due to begin early 2021

READ MORE

Russ Urban, president of High Hotels Ltd

Pennsylvania Home to the First 100% Solar, Marriott-Branded U.S. Hotel

READ MORE

phone pad

Shocking scam: fraudster pretending to be from BC Hydro attempts to extort business

READ MORE