text:
Confusion continues to reign across the global marketplace. If there's no safe place to invest, does that mean you should invest nowhere? Or should you invest where it's relatively safe?
To put things into perspective, let's start with the backdrop to last week's market behavior.
As you recall, we had come off a pretty bad week related to the data glitch on Thursday, May 6, and as I reported last week, the market decided that was not a real problem and the situation in Greece seemed resolved. So on Monday the 10th, we had one of the most bullish days in several months. Tuesday was fine, and then on Wednesday the 12th, the government fired a warning shot across our bow in the morning with trade balance data that was worse than at least I expected, but not too bad according to most folks. Then at 2 o'clock Eastern time that day, they hit us dead center with one of the worst Treasury reports in memory.
Not only was the deficit worse than the consensus figure of $40 billion and the prior month's figure of $65.4 billion, the government was blasé in reporting a $82.7 billion deficit – more than double the consensus estimates. If you look carefully at a minute-by-minute trading chart since that announcement, the market has drifted steadily downward ever since.
The slightly poor jobless claims number on Thursday certainly didn't help, and the fact that retail sales and industrial production were about as expected simply kept things from being worse. So the market is operating against this very negative backdrop, led by the unexpected Treasury deficit and amplified by the oil spill in the Gulf of Mexico, government debt worldwide, and concern about Wall Street in general.
On the brighter side, companies seem to have adapted to the difficult credit and uninspired economic environment, and have figured out how to generate earnings, often well above targets. And despite woeful unemployment, consumer confidence remains more optimistic than one would expect. If we can avoid fall-out inflation from the mounting government debt (and I'm not sure that can be done), we may still have a decent market, since valuations in general remain modest.
Monthly Vs. Weekly Stats. I would like to paint a rational view of this market lest we look at last week's nice numbers and become overly enthusiastic. Sabrient market stats show a quite different picture between last week and the week before. If you don't think about these stats, last week's gains in all cap-styles look pretty good, led by the sharp +6.4% increase in Small-cap Value and even the +2.3% increase in Large-cap Value, which brought up the bottom.
Click here to see the Market Stats.
But the picture is quite different if we look at the week following the Treasury announcement. Since the announcement on Wednesday afternoon through midday today, there was a nasty drop of almost 8%, especially for large caps. While we closed today with a rally after being down nearly 2%, the overall market movement over the past month has been steadily downward.
My point here is that we should pay more attention to the one-month numbers and look with a jaundiced eye at the last calendar week.
Sectors. You can glean a sense of the market's confusion by looking at the sectors. Surprisingly, the Industrials Sector led, up +4.8%, which is a general bullish sign, but Utilities, the classic flight-to-safety sector, came in second at +3.3%. And then Healthcare, which is also normally a safe haven for investors, was dead last, up only +1.5%, but of course there is still the health care crisis spooking would-be investors.
Materials did okay, despite the strong dollar rally which didn't seem deserved in light of the reported $82.7 billion deficit. Perhaps the dollar found its strength in comparison to the currencies of those European countries known as PIIGS (Portugal, Italy, Ireland, Greece and Spain). But the big picture is not pretty and is fraught with dangers.
Looking ahead, our sector model favors Materials although the continued strength in the dollar will not help in that sector. Energy and Financials also look appealing, but then there is the offshore oil spill and Congress's intention to spill on Wall Street. I would discount the lowly position of Industrials, as it was brought down by the questionable market behavior the past few weeks and months. Information Technology looks like a prudent bet.
We emphasize caution, buying undervalued companies in strong sectors and hedging where possible.
4 Stock Ideas for this Week
Like last week, I conservatively started with Sabrient's Undervalued Large Cap Growth preset search on MyStockFinder (http://MyStockFinder.com). Then, I also asked for mid and small caps and slightly up-weighted Technicals, Analyst Upgrades, and Insider Buying. Here are 4 new stock ideas from a variety of sectors:
Allied World Assurance (NYSE: AWH) – Financials
Yanzhou Coal Mining (NYSE: YZC) – Energy
Impax Laboratories (Nasdaq: IPXL) – Healthcare
Sturm Ruger (NYSE: RGR) – Consumer Discretionary


text:
It's a dream that I'm waiting to turn Nightmare.
But it stays as it is.
Each day gets better,
I'm able to smile longer,
Laugh more.
I'm waiting for this Happily Ever,
To become a Loved You Never.
That wait turns into forever,
And I realize it won't happen.
You dazzle me,
It's my only reason to get back up,
When I'm knocked down.
Eyes of yours,
I can see you mean every word of it.
So we'll stay together,
No matter where we go.
You promised me Four Words,
"You'll never lose me" --
I hold onto the words like a Lifeline.
Enough of that though,
I know it's impossible to explain.
We're only apart for a little while,
I'll always be here for you.
I'll be there without being there.
You said those words to me,
So it's time for me to promise you the same,
Forever I'll be here, No matter what...
This Nightmare is finally ending, into this,
Happily Ever.
© Copyright 2017 Arian. All rights reserved.
Status: Finished
Genre: True Confessions
Book / Romance
Book / Romance
Book / Young Adult
Paste the link to picture in the entry below:
Paste the link to Youtube video in the following entry:
Cannot annotate a non-flat selection. Make sure your selection starts and ends within the same node.
An annotation cannot contain another annotation.
There was an error uploading your file.

subset: commoncrawl


text:
President-elect Trump's nomination of Oklahoma Attorney General Scott Pruitt, who fails to recognize the climate change threat, belittles the EPA and our most fundamental right to clean air and water, is not fit for the job. We need an EPA Administrator who respects the agency as well as the science underlying the EPA's mission to protect public health. The new administrator must also recognize that a healthy environment is essential to a robust and growing economy."]]>
Campbell Soup Company, Clif Bar & Company, Gap Inc., JLL, Nestlé, Owens Corning, Schneider Electric, United Technologies and Whirlpool Corporation are calling on lawmakers to reinstate Ohio's clean energy standards. The request comes as lawmakers are currently debating the future of Ohio's energy standards, which shape everything from where Ohio's electricity comes from to how much that energy will cost and what services utility companies will offer to customers. Lawmakers are expected to vote on proposals in the days following the election.
"Now is the time for lawmakers to strengthen Ohio's energy efficiency and renewable energy standards," said Alli Gold Roberts, policy manager at Ceres and one of the organizers of the business group. "These standards are good for business, and failing to reinstate them will send the wrong signal to companies and investors throughout the state."
Two years ago, Ohio launched an experiment on energy policy, becoming the first state to freeze its energy efficiency and renewable energy standards. The freeze has been in place ever since. State lawmakers, with Senate Bill 320 and other proposals, are debating what to do once the freeze expires at the end of the year.
Supporters of the freeze, which began in 2014, said Ohio needed a chance to reevaluate whether the standards were working. Since then, a wealth of new data has become available—almost all of it showing the standards' effectiveness.
While the energy standards were in place:
During the freeze on the energy standards:
All of the businesses in the coalition released their own statements about the standards. Those statements can be read below.
"We urge Ohio's leaders to lift the state's freeze on the renewable energy and energy efficiency standards. Continuing to undo smart clean energy policies won't help us build a stronger Ohio for tomorrow. Campbell remains supportive of removing barriers and promoting incentives for low carbon energy options. We believe renewable energy and energy efficiency are good for the environment and good for business. The solar project on Campbell's Napoleon, OH site is expected to save $4 million and eliminate 250,000 metric tons of greenhouse gas over the purchase agreement's 20-year period."
— Dave Stangis, Vice President Corporate Social Responsibility, Campbell Soup Company
Ohio Locations: Cincinnati – Office, Columbus – Retail Store, Jeffersonville – Retail Store, Napoleon – Food Processing Plant, Westlake – Retail Store, Willard – Manufacturing Plant
"Clif Bar opposes Ohio's current freeze on renewable energy and energy efficiency standards. As a company that loves the outdoors, we understand that clean, renewable energy is good for people and the planet. We also know that it's good business to run a green business. We use 100% green power in our Clif Bar bakeries and headquarters, and are committed to 50% or more green power within our supply chain by 2020. With facilities in Ohio, we hope to see legislators reinstate the state's renewable energy and energy efficiency standards."
— Elysa Hammond, Director of Environmental Stewardship, Clif Bar & Company
Ohio Locations: Cincinnati – Office
"The time to act is now. We urge leaders in Ohio to lift the freeze on the state's renewable energy and energy efficiency standards. Clean energy policies are smart and will build a stronger and more resilient Ohio. As a company with a large presence in the state, energy efficiency and renewable energy is important to our business and our future. We've set an ambitious goal to reduce our GHG emissions by 50% by 2020, and we encourage Ohio's leaders to help us all move toward a clean energy future."
— Christina Nicholson, Director Environmental Impact, Gap Inc.
Ohio Locations: Grove City – Office, Groveport – Distribution Center and Gap, Banana Republic, Old Navy and Athleta Retail Stores across the state
"At JLL we are committed to reducing greenhouse gas emissions because it helps our bottom line and our planet. That's why we call on Ohio lawmakers to pass common sense legislation that will reinstate Ohio's renewable energy and energy efficiency standards. We want to see a future where the built environment has a positive impact on the places and cities in which we live and work. To help get us there, we continuously embed sustainability and energy efficiency into our business, and support clean energy policies that send a strong market signal to the private sector." Bob Best, Head of JLL Energy and Sustainability Services."
— Bob Best, Head of JLL Energy and Sustainability Services, JLL
Ohio Locations: Offices in Cincinnati, Cleveland and Columbus (x2)
"As a major manufacturing company in Ohio, we rely on clean energy to reduce costs and lower our carbon emissions. We've set ourselves clear targets to further reduce greenhouse gas emissions in all of our manufacturing operations. We're making good progress and our support of policies that encourage the transition toward a low carbon economy helps us, and other companies, to continually improve our environmental performance. We know this is also important to many of our consumers and we strongly believe that lifting the freeze on Ohio's renewable energy and energy efficiency standards is good for the environment and good for business, as well as the state's economy and the people who call it home."
— Paul Bakus, President, Corporate Affairs, Nestlé
Ohio Locations: Solon– Prepared Foods HQ, Manufacturing & Product Technology Center; Cleveland– Manufacturing; Marysville – Product Technology Center; Zanesville – Nestlé Purina Manufacturing; Hilliard - Nestlé Waters Bottling Plant; Dublin – Food Quality Scientific Center
"As a large local and global electricity consumer, continuously seeking more sustainable energy supplies, we support immediately lifting the freeze on Ohio's energy efficiency and renewable energy standards. Additionally, Owens Corning is a market leader in manufacturing energy saving products and materials that enhance wind energy performance. This uniquely positions us to speak to the energy savings, environmental impact and job-creating value of expanding the penetration of energy efficiency and renewable energy solutions. Our recognition of renewable energy's diverse value is also reflected in our actions. In 2015, Owens Corning announced that it had executed power supply agreements of newly installed capacity that represented, at the time, the largest wind power agreements reported by an industrial company in the world. That same day, Owens Corning dedicated a 2.4-megawatt solar parking lot canopy at the company's headquarters in Toledo, the largest system of its kind in the Midwest. We support lifting the freeze."
— Frank O'Brien-Bernini, VP and Chief Sustainability Officer, Owens Corning
Ohio Locations: Owens Corning operates eight facilities in the state of Ohio, including our global business headquarters in Toledo, our global R&D headquarters in Granville, and six manufacturing operations around the state (Newark, Mt. Vernon, Medina, Tallmadge, Tiffin, Columbus).
"Energy efficiency proved to be an effective cost saving program for both residential and commercial customers in Ohio. Great progress has been made in growing Ohio's economy and creating local jobs, and yet the program had not come close to realizing its full potential before it was halted. Lifting Ohio's freeze on the Energy Efficiency Resource Standard will bring future benefits and cost reductions to Ohio consumers."
— Trisha Knych, Vice President Government Relations & North America Communications, Schneider Electric
Ohio Locations: Oxford - Manufacturing; West Chester - Field Service; West Chester - Field Office; Kettering - Manufacturing; Broadview Heights - Field Service; Westerville - Field Office
"When we use energy more efficiently, we reduce costs, increase productivity and become more competitive. Annual electricity bills can be a significant cost to many businesses. Energy efficiency helps reduce those costs, and the benefits of efficiency compound across the supply chain. Ending the freeze on energy efficiency will allow Ohio to be more competitive in the global economy."
— John Mandyck, Chief Sustainability Officer, United Technologies
Ohio Locations: Akron, Columbus, Dayton, Heath, Independence, Sharonville, Troy, Uniontown
"Whirlpool Corporation urges Ohio's leaders to restore the state's Energy Efficiency Resource Standard and be proactive in supporting energy policies that promote affordability, reliability and protection of the environment. These priorities are a foundation for Ohio's continued economic growth. As the number one major appliance manufacturer in the world, Whirlpool Corporation will continue to do its part by developing innovative resource-efficient appliances and by improving the environmental performance of our facilities."
— Jeff Noel, Corporate Vice President, Communications and Public Affairs, Whirlpool Corporation
Ohio Locations: Clyde (clothes washer manufacturing), Marion (clothes dryer manufacturing), Findlay (dishwasher manufacturing), Ottawa (freezer and ice maker manufacturing), Greenville (KitchenAid small appliance manufacturing), and Columbus (regional distribution center)]]>
The call comes as the governors of nine states -- Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont -- meet to decide on the extension of the cap-and-trade initiative known as the Regional Greenhouse Gas Initiative, or RGGI. An extension decision could be made as early as this summer.
"Continuing reductions beyond 2020 will provide certainty for companies to plan and invest for the future, make the region an attractive place to do business, and continue to lower electricity rates for consumers," the company signatories write.
The companies and investors, which include Autodesk, Calvert Investments, Eileen Fisher, Pax World Asset Management, Seventh Generation, Staples, Inc., Stonyfield, Thornton Tomasetti, and VF Corporation, are asking the governors to tighten the electricity sector's annual carbon emissions cap by five percent per year.
Click here to view an interactive map of the letter signatories by state.
The proposed scenario doubles the current 2.5-percent annual cap reduction rate and is more consistent with the power sector's actual rate of carbon reductions since the initiative formally began in 2009.
"As a market-based carbon pricing mechanism, RGGI has successfully demonstrated that it is possible to decouple carbon emissions from economic growth," said Anne Kelly, senior policy and BICEP director at Ceres, the nonprofit sustainability group that organized the letter. "Strengthening RGGI beyond 2020 will provide companies and investors with the economic certainty that they need at the level of ambition that is needed to address the climate challenge. As today's call from business demonstrates, tightening the emissions cap is a win-win for the economy and the planet."
RGGI has helped to cut regional power-sector emissions by 30 percent while the regional economy grew over 24 percent, according to a new report from the Acadia Center. It has also helped to raise more than $2.5 billion in revenue for regional clean energy and energy efficiency projects, which have saved consumers billions of dollars on their energy bills and reduced electricity rates by an average of 2% or more.
Click here to learn more about RGGI.
"RGGI has reduced greenhouse gas emissions and improved the economies of the states it operates in," said Julie Fox Gorte, Ph.D., Senior Vice President for Sustainable Investing at Pax World Management LLC. "There is no more effective way to demonstrate that both are not only possible, but compatible. If we are to avoid catastrophic climate change, RGGI needs to continue, and to get stronger."
"RGGI has helped drive a 30% reduction in carbon emissions in our region since 2008, while also maintaining reliability and creating economic value in the NH economy," said Lisa Drake, Director of Sustainability Innovation at Stonyfield. "Codifying the trend of 5% annual emission reductions in the RGGI region will further strengthen efforts to address climate change and provide additional economic opportunities through clean energy investments. Because of RGGI, New Hampshire is also well-positioned to meet requirements of the EPA's Clean Power Plan."
"We are proud to support efforts to strengthen the Regional Greenhouse Gas Initiative post-2020," said Tim Smith, Director of ESG Shareowner Engagement at Walden Asset Management. "RGGI seeks to account for the social costs of carbon and encourages states to actively invest in renewable energy and energy efficiency solutions. We urge governors in the region to continue this ambitious program, which can serve as a model for other states across the country."
About Ceres
Ceres is a nonprofit group mobilizing many of the world's largest companies and investors to take stronger action on climate change, water scarcity and other sustainability challenges. Ceres directs the Investor Network on Climate Risk, a network of over 120 institutional investors with collective assets totaling more than $14 trillion. Ceres also engages with 100-plus companies, many of them Fortune 500 firms, committed to sustainable business practices and the urgency for stronger climate and clean energy policies. For more information visit: www.ceres.org or follow on Twitter @CeresNews.
The new report analyzed publicly reported data on carbon dioxide (CO2), nitrogen oxides (NOx), sulfur dioxide (SO2), and mercury emissions from the nation's 100 largest electric power producers, which account for 85 percent of the nation's power production.
Notably, the report, "Benchmarking Air Emissions of the 100 Largest Electric Power Producers in the United States," concludes that since 2000 emissions of all four major pollutants have dropped while total electricity generation and the American economy have grown.
"The nation's electric power providers are in the midst of an unprecedented shift toward cleaner sources of energy," said Dan Bakal, director of electric power at Ceres. "Yet progress is uneven, which highlights the need for many of the nation's power providers to accelerate their transition to cleaner resources and lower carbon emissions."
The report, which ranks emissions by producer and state, finds that CO2 emissions—a key driver of climate change—totaled 1.96 billion tons in 2014. But they dropped 15 percent between 2005 and 2014, and with preliminary data suggesting another 6 percent decline in 2015, CO2 emissions are almost back down to 1990 levels. This will help the U.S. continue to make progress towards the goals agreed upon in the Paris Climate Agreement. Despite the overall declines, there is still significant variability among power producers, with some power providers achieving fleet-wide CO2 emissions rates that are 10 times lower than others.
"Power plants are pouring out less and less of the carbon pollution driving climate change. And America is embracing the benefits of clean energy," said Starla Yeh, senior policy analyst in the Climate and Clean Air Program at the Natural Resources Defense Council. "Renewable energy is widely expected to continue its strong growth, which will put the electricity sector in an excellent position to help the U.S. meet its international commitments. We must reach this milestone to avoid the worst impacts of climate change."
The report identifies three primary factors that are driving the drop in CO2 emissions: energy efficiency improvements, coal plant retirements driven by market conditions and new air pollution standards, and an increase in generation from low- and zero-emitting resources, including natural gas, wind, and solar. Installed wind and solar capacity in the U.S. has more than doubled in the past five years to over 100 gigawatts (GW). Their combined output is now comparable to total hydroelectric generation in the U.S. Nuclear power continues to be the largest source of zero-carbon generation in the country at 62 percent of total non-emitting output.
Together with CO2, SO2, NOx, and mercury are associated with environmental and public health problems, including climate change, mercury deposition, acid rain, smog, regional haze, and fine particle air pollution, which can lead to asthma and other respiratory illnesses.
Other key findings in the benchmarking report include:
"The Benchmarking Air Emissions report is an important resource for tracking changes in the environmental performance of the U.S. electric power sector and making this information available to our stakeholders – owners, customers, employees and communities," said Chuck Barlow, vice president of environmental strategy and policy for Entergy Corporation. "Since 2001, Entergy has operated under voluntary commitments to stabilize our CO2 emissions through 2020 at 20 percent below year 2000 levels. Through 2015, our cumulative emissions are more than 9 percent below our 2001–2015 target. Our fleet emission intensity is well below that of a new combined-cycle gas unit."
The Benchmarking report is the 12th in a series since 1997 highlighting environmental improvements and progress in the nation's electric sector. The 100 power producers evaluated in the report represent 85 percent of the electric power generated in the U.S. and 87 percent of the industry's air emissions. The report ranks each power company's emissions and its emission rate (determined by dividing emissions by electricity produced) for each pollutant against the emissions and rates of the other companies.
In addition, states are ranked by the amount of each pollutant released. For example, the 10 states with the highest CO2 pollution are: Texas, 263.3 million tons; Florida, 119 million tons; Indiana, 114.1 million tons; Pennsylvania, 109.3 million tons; Ohio, 106 million tons; Illinois, 101 million tons; Kentucky, 94.1 million tons; Missouri, 82.8 million tons; West Virginia, 79.5 million tons; and Alabama, 73.4 million tons.
When ranked by CO2 emissions rate (lb CO2/MWh), the top 10 states in descending order are Kentucky, Wyoming, West Virginia, Indiana and Missouri, North Dakota, Utah, New Mexico, Ohio, and Colorado.
Based on 2014 generation and emissions data from the U.S. Energy Information Administration (EIA) and EPA, the benchmarking report is a collaborative effort between Ceres; Bank of America; power producers including Calpine, Entergy, and Exelon; and the Natural Resources Defense Council. It is authored by M.J. Bradley & Associates.
Media Contacts:
Meg Wilcox
(617) 247-0700
Jake Thompson
(202) 289-2387
Brett Kerr
(713) 830-8809
Ann Becker
(601) 368-5014
Paul Adams
(410) 470-4167
|Bank of America
Kelly Sapp
(980) 386-9514
About Ceres
Ceres is a nonprofit organization mobilizing many of the world's largest companies and investors to take stronger action on climate change, water scarcity and other sustainability challenges. Ceres directs the Investor Network on Climate Risk (INCR), a network of over 120 institutional investors with collective assets totaling more than $14 trillion. Ceres also engages with 100-plus companies, many of them Fortune 500 firms, committed to sustainable business practices and the urgency for stronger climate and clan energy policies. For more information, visit www.ceres.org or follow on Twitter @CeresNews.
About NRDC
The Natural Resources Defense Council (NRDC) is an international nonprofit environmental organization with more than 2 million members and online activists. Since 1970, our lawyers, scientists, and other environmental specialists have worked to protect the world's natural resources, public health, and the environment. NRDC has offices in New York City, Washington, D.C., Los Angeles, San Francisco, Chicago, Livingston, Montana, and Beijing. Visit us at http://www.nrdc.org and follow us on Twitter @NRDC.
About Calpine
Calpine Corporation is America's largest generator of electricity from natural gas and geothermal resources. Our fleet of 84 power plants in operation or under construction represents more than 27,000 megawatts of generation capacity. Through wholesale power operations and our retail business, Champion, we serve customers in 21 states and Canada. We specialize in developing, constructing, owning and operating natural gas-fired and renewable geothermal power plants that use advanced technologies to generate power in a low-carbon and environmentally responsible manner. Our clean, efficient, modern and flexible fleet is uniquely positioned to benefit from the secular trends affecting our industry, including the abundant and affordable supply of clean natural gas, stricter environmental regulation, aging power generation infrastructure and the increasing need for dispatchable power plants to successfully integrate intermittent renewables into the grid.
About Entergy Corporation
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
About Exelon
Exelon Corporation (NYSE: EXC) is a Fortune 100 energy company with the largest number of utility customers in the U.S. Exelon does business in 48 states, the District of Columbia and Canada and had 2015 revenue of $34.5 billion. Exelon's six utilities deliver electricity and natural gas to approximately 10 million customers in Delaware, the District of Columbia, Illinois, Maryland, New Jersey and Pennsylvania through its Atlantic City Electric, BGE, ComEd, Delmarva Power, PECO and Pepco subsidiaries. Exelon is one of the largest competitive U.S. power generators, with more than 32,700 megawatts of nuclear, gas, wind, solar and hydroelectric generating capacity comprising one of the nation's cleanest and lowest-cost power generation fleets. The company's Constellation business unit provides energy products and services to approximately 2 million residential, public sector and business customers, including more than two-thirds of the Fortune 100. Follow Exelon on Twitter @Exelon.
About Bank of America
At Bank of America, our focus on Environmental, Social and Governance (ESG) factors is critical to fulfilling our purpose of helping make people's financial lives better. Our commitment to growing our business responsibly is embedded in every aspect of our company. It is demonstrated in the inclusive and supportive workplace we create for our employees, the responsible products and services we offer our customers, and the impact we help create around the world in helping local economies thrive. An important part of this work is forming strong partnerships across sectors – including community and environmental advocate groups, as well as non-profits – in order to bring together our collective networks and expertise to achieve greater impact. Learn more at www.bankofamerica.com/about and follow us on Twitter at @BofA_News.
The 2016 Benchmarking Utility Clean Energy analysis ranks the 30 largest electric utility holding companies and their 119 subsidiary companies, which collectively account for about 60 percent of U.S. retail electricity sales. The results show overall advances on renewable energy and energy efficiency in 2014, the latest year for which data is available, with some utilities producing 25 to 35 percent of their electricity from wind, solar and other renewables.
Wide disparities in the utilities' clean energy performance remain, however, underscoring the need for swift implementation of the U.S. Environmental Protection Agency's Clean Power Plan. The plan reduces carbon emissions from electric power plants by 32 percent by 2030.
"Renewable energy and energy efficiency, key building blocks of the Clean Power Plan, are increasingly cost-effective options for electric utilities looking to lower their carbon emissions," said Dan Bakal, director of electric power programs at Ceres, a nonprofit sustainability advocacy organization. "Our analysis shows that the U.S. electric sector is in the midst of an unprecedented shift toward clean energy resources and that state policies are critical for continued progress in achieving national and international climate goals."
Utilities with the strongest results were typically in states with strong clean energy policies, such as Colorado, Minnesota, Massachusetts and California. The lowest-ranked utilities were mostly in southeast states, such as Alabama and Mississippi, which have weak state policies.
Top and Bottom Ranked U.S. Investor-Owned Electric Utilities on Clean Energy Deployment
Among the 30 holding companies, Sempra, PG&E, Edison International and Xcel ranked the highest for renewable energy sales, accounting for more than half of the total sales. Renewable resources made up more than 20 percent, and in Sempra's case, nearly 36 percent, of the companies' sales in 2014. FPL, American Electric Power, ConEdison and PPL Corp ranked at the bottom, with renewable energy sales accounting for less than two percent of their total retail electricity sales.
Sempra Energy's renewable energy sales grew by more than 55 percent between 2013 and 2014 alone and Pinnacle West's grew by nearly 50 percent, while Eversource and DTE Energy demonstrated growth of more than 25 percent.
"Xcel Energy's positive ranking results from more than a decade of working with our states on clean energy policies," said Frank Prager, vice president, Policy and Federal Affairs for Xcel Energy. "We continue to focus on our customers' growing desire for clean, renewable energy while demonstrating that we can successfully integrate these resources reliably and at a reasonable cost. It's an approach that is significantly reducing emissions and ensuring a more sustainable energy future for our communities."
"Californians care a lot about clean energy, and we want to be an active partner in making the transition to a low-carbon economy as quickly as possible," said Melissa Lavinson, chief sustainability officer and vice president of federal affairs for PG&E. "Our showing in the Ceres rankings reflects our commitment to addressing the urgent challenge of climate change, while also helping our customers to use less energy and save money."
Energy efficiency top performers among the holding companies include Eversource Energy, PG&E, Portland General Electric, National Grid and Pinnacle West. Each achieved annual savings of at least 1.5 percent of their total retail electric sales, while also helping their customers save on their energy bills. Dominion Resources, FPL, Entergy, and Southern Co and OGE Energy were among the weakest performers.
Continued investment in energy efficiency and zero-carbon energy is central to Exelon's effort to build the next generation energy grid and drive the transition to clean energy," said Chris Gould, Exelon's senior vice president, corporate strategy, and chief innovation and sustainability officer. "Exelon continuously works to identify new innovations and smart technologies to give customers greater access to clean energy and tools to help them use energy more efficiently."
Among the report's other key findings:
"Seeing the leaps the renewable energy leaders have made in just two years has been amazing," said Ron Pernick, Managing Director of Clean Edge, a clean-tech research and advisory firm, which co-authored the report with Ceres. "Governments, corporations, and individual customers continue to demand clean, efficient energy, and some utilities are answering that call."
The report is available for download at www.ceres.org/cleanenergyreport.
Update: The report was updated on July 13, 2016 to reflect updated renewable energy data for American Electric Power (shown in Figure 10).
About Ceres
Ceres is a non-profit organization that is mobilizing many of the world's largest investors and companies to take stronger action on climate change, water scarcity and other global sustainability challenges. Ceres directs the Investor Network on Climate Risk, a group of 120 institutional investors managing about $14 trillion assets focused on the business risks and opportunities of climate change. Ceres also engages with 100-plus companies, many of them Fortune 500 firms, committed to sustainable business practices and the urgency for strong climate and clean energy policies. For more information, visit www.ceres.org or follow on Twitter @CeresNews.
About Clean Edge
Clean Edge, Inc., founded in 2000, is the world's first research and advisory firm devoted to the clean-tech sector. The company benchmarks and tracks the clean-energy economy by delivering stock indexes, utility and consumer surveys, and regional (state and metro) leadership tracking. These services provide companies, investors, NGOs, and governments with timely research, trending analysis, and actionable insights. Managing director Ron Pernick and senior editor Clint Wilder are co-authors of the widely acclaimed business books The Clean Tech Revolution (HarperCollins, 2007) and Clean Tech Nation (HarperCollins, 2012). To keep abreast of the latest clean-energy trends, or for more information on the company, visit www.cleanedge.com and follow us on Twitter @CleanEdgeInc.]]>
"Today's announcement by PG&E leads the way in demonstrating that when a nuclear power plant is retired, we don't have to assume that fossil fuel power plants will replace it. In taking this step, PG&E is once again exerting its clean energy leadership while ensuring that it will continue to provide the affordable and reliable power that its customers demand."
"PG&E's decision also sends an important message that even ambitious clean energy policies – such as California's requirement that 50 percent of its power come from renewable energy by 2030 – are necessary, but not sufficient if we are to achieve the Paris Climate Agreement's goal of limiting global average temperature increases to less than two-degrees Celsius. Business leaders have an important role to play in maximizing clean energy opportunities."]]>
A week after more than 170 countries signed the Paris Agreement and investors voted on a shareholder climate risk resolution at the AGM of US utility AES Corporation, a global network of more than 270 institutional investors (representing assets worth over €20 trillion) has published a guide setting out the threats facing the utilities sector and investor expectations for how these companies must act to adapt their business strategies to a 2°C climate change pathway.
Launching Investor Expectations of Electric Utilities Companies - Looking down the line at carbon asset risk Stephanie Pfeifer, CEO at the Institutional Investors Group on Climate Change said today: "With so many countries now clearly committed to implementing the Paris Agreement, institutional investors are concerned that some electric utility companies are not sufficiently prepared for the transition to a lower carbon economy necessary to limit global warming to well below 2°C. Today the global investor community is setting out as clearly as possible their expectations for utility companies on actions required to address climate change risks."
Matthias Narr, Engagement Specialist at asset manager Robeco and lead author of the guide added: "This guidance is designed to shape constructive engagement between investors and electric utilities through dialogue on the long-term risks and opportunities these companies face from climate change. Investors need to understand whether utility companies are prepared for the changing market dynamics that are likely to arise from the policies and actions put in place to limit global warming. Business strategy and capital allocation decisions made now and over the coming years will determine the future sustainability and profitability of electric utilities for decades ahead. Investors therefore have a clear need to establish that capital allocation decisions made by the boards of these utilities give due weight to the low carbon transition in ways that will protect both future sustainability and corporate profitability of the sector."
Dan Bakal, Director of the Electric Power Program at Ceres said, "During the 2016 proxy season investors are showing unequivocally through shareholder resolutions to companies such as AES that they expect electric power companies to address carbon asset risk by assessing the impact of a 2°C scenario on their future resilience. Going forward, asset owners and fund managers will need to know how power companies - and particularly the boards accountable for overseeing them - see the future impact of climate change on energy demand and pricing, as well as how they plan to align their business model with the GHG reductions required to deliver binding international agreements."
In addition to questions about policy, technology and demand changes the guide also encourages investors to ask utility companies about the management of legacy assets, including power generation plants that are no longer economical to use either due to a shift away from fossil fuels or as a consequence of increased water scarcity.
Commenting further Emma Herd, CEO at IGCC Australia and New Zealand added: "These risks are not theoretical, they are today's reality for utility companies and their investors across all markets. Climate change is already driving structural transformation in the energy sector. The risks and opportunities created by the transition to a net zero carbon global economy will continue to grow and the pace of change accelerate. It is vital that utility companies undertake comprehensive <2°C stress testing of their business activities and disclose to investors how their business model will fare in the face of climate change."
About the guide
Investor Expectations of Electric Utilities Companies - Looking down the line at carbon asset risk was developed by the Institutional Investors Group on Climate Change (IIGCC) with support from investor networks in North America (Ceres' INCR) and Australasia (IGCC). It is the third in a series of sector focused guides (joining others addressing engagement in the oil & gas and mining sectors) that aim to set a common agenda for investor engagement on climate change. It is also intended to be used in tandem with Institutional Investors' Expectations of Corporate Climate Risk Management (http://www.iigcc.org/publications/publication/institutional-investors-expectations-of-corporate-climate-risk-management ) and sets out investor expectations grouped into five areas of concern:
Notes for Editors
Investor Expectations of Electric Utilities Companies - Looking down the line at carbon asset risk has been prepared by IIGCC in collaboration with Ceres' INCR and IGCC (see below). It joins several guides produced previously for other sectors (oil, gas, mining) and can be used in conjunction with Institutional Investors' Expectations of Corporate Climate Risk Management.
Investors consider lack of transparency about carbon emissions, water use and long-term strategy a serious issue in the utilities sector, impacting their ability to calculate their portfolio's carbon intensity, assess carbon asset risk and evaluate dependence upon (reliable) water resources. In 2015, by market capitalization, 85% of European electric utilities reported carbon emissions to investors via CDP. The figures in other regions are significantly lower: only 45% of US electric utilities and 25% of electric utilities outside of the US or Europe.
The Institutional Investors Group on Climate Change (IIGCC) is a forum for collaboration on climate change for investors. IIGCC's network includes over 122 members, with some of the largest pension funds and asset managers in Europe, representing €13 trillion in assets. IIGCC's mission is to provide investors a common voice to encourage public policies, investment practices and corporate behaviour which address long-term risks and opportunities associated with climate change. See www.iigcc.org and @IIGCCnews
The Investor Network on Climate Risk (INCR) is a North America focused group of institutional investors dedicated to addressing the financial risks and investment opportunities posed by climate change and other sustainability challenges. INCR currently has more than 100 members representing over $13 trillion in assets. INCR is a project of Ceres, a non-profit advocate for sustainability leadership that mobilises investors, companies and public interest groups to accelerate and expand the adoption of sustainable business practices and solutions to build a healthy global economy. See www.ceres.org and @INCRnews
The Investor Group on Climate Change (IGCC) is a collaboration of Australian and New Zealand institutional investors and advisors, managing over $1 trillion and focussing on the impact that climate change has on the financial value of investments. IGCC aims to encourage government policies and investment practices that address the risks and opportunities of climate change, for the ultimate benefit of superannuants and unit holders. See www.igcc.org.au and @IGCC_Update
The Asia Investor Group on Climate Change (AIGCC) is an initiative to create awareness among Asia's asset owners and financial institutions about the risks and opportunities associated with climate change and low carbon investing. AIGCC provides capacity for investors to share best practice and to collaborate on investment activity, credit analysis, risk management, engagement and policy. AIGCC represents the Asian voice in the evolving global discussions on climate change and the transition to a greener economy. See www.aigcc.net and @AIGCC_update]]>
The signatory companies include Adobe Systems Inc.; Mars Incorporated; IKEA North America Services, LLC; and Blue Cross Blue Shield of Massachusetts, Inc.
Calling the economic risks from climate change "staggering" and citing precipitous drops in renewable energy costs, the diverse companies praise the EPA plan as a viable "national market solution" that will create market certainty and warn of "economic and social disruptions" if it is delayed.
"Companies currently are facing and will face future damage … from rising sea levels and increasing intense weather events. They will also encounter climate-driven impacts to supply chains and agricultural production, as well as unreliable energy supply, decreased labor productivity and threats to public health," wrote the companies in a 30–page brief, among numerous legal filings from companies this week in favor of the rule. At the same time, "the costs of doing business without a national carbon mitigation strategy subjects the Amici companies to undesirable risks."
"(We) believe the Clean Power Plan, when fully implemented, would not cause business harm to (our) operations as large energy consumers and purchasers," the companies concluded. "Swift and full implementation of the Clean Power Plan will directly benefit the Amici companies' operations."
"The scale of the sustainability challenges in the world require bold commitments and bold action," said Rob Olson, Chief Financial Officer, IKEA North America Services, LLC. "IKEA supports long-lasting, robust policies like the Clean Power Plan, which encourage the innovation needed to grow a low-carbon economy."
"Mars takes climate change very seriously and believes the security of the world's food supply depends on it. We know we have a responsibility to mitigate the impact of our business on climate change, and we have committed to eliminating fossil fuel energy use and greenhouse gas emissions, minimizing our impact on water quality and availability, and mitigating the impacts of waste by 2040," said Barry Parkin, Chief Sustainability Officer, Mars, Incorporated. "We know we can succeed faster toward these goals through collaboration with industry, government and non-government organizations, and with the timely implementation of the EPA's Clean Power Plan."
"Blue Cross Blue Shield of Massachusetts is committed to reducing our own impact on the environment and creating healthy environments for our associates, members and communities," said Kyle Cahill, Director of Sustainability and Environmental Health at Blue Cross. "Implementing the Clean Power Plan will bring significant health benefits through improved air quality and helping to address climate change, one of our biggest public health threats today."
The brief, being filed in advance of key oral arguments before the D.C. Circuit Court on June 2, makes wide-ranging arguments in support of the EPA rule that was placed under "an emergency stay" by the U.S. Supreme Court earlier this year. Among its key points:
Jerome C. Muys, Jr., Jeffrey M. Karp and Van P. Hilderbrand, Jr., of Sullivan & Worcester, LLP served as pro bono counsel for the Amici Companies with the assistance of Morgan M. Gerard.
UPDATE 5:00 PM EST: The brief has been filed and is available here: http://www.ceres.org/files/u.s.-court-of-appeals-amici-brief-supporting-epa-clean-power-plan
About Ceres
Ceres is a non-profit organization that is mobilizing many of the world's largest investors and companies to take stronger action on climate change, water scarcity and other global sustainability challenges. Ceres directs the Investor Network on Climate Risk, a group of 120 institutional investors managing about $13 trillion assets focused on the business risks and opportunities of climate change. Ceres also engages with 100-plus companies, many of them Fortune 500 firms, committed to sustainable business practices and the urgency for strong climate and clean energy policies. For more information, visit www.ceres.org or follow on Twitter @CeresNews.
From Mindy Lubber, Ceres president and director of the Investor Network on Climate Risk:
"Stepped up US-Canada collaboration on climate provides a welcome North American boost as the clean energy transition continues to pick up steam globally in the wake of the Paris climate agreement. Ceres and members of our $13 trillion Investor Network on Climate Risk, as well as our major business coalition Business for Innovative Climate & Energy Policy (BICEP), welcome the commitment to cut methane emissions from the oil and gas industry—the largest industrial source of methane emissions in the U.S.— by 40 to 45 percent below 2012 levels by 2025.
Investors and companies are concerned that methane emissions pose a serious threat to climate stability, accelerating the rate of warming in the near term and threatening infrastructure and economic harm. Curbing this air pollution from existing sources as well as new facilities will help confront climate change while also promoting economic growth and regulatory clarity.
Ceres also applauds President Obama and Prime Minister Trudeau for recognizing the importance of reducing emissions in the transportation sector — including the vehicle and aviation sectors — in meeting climate targets. US-Canadian collaboration on strong climate pollution standards for trucks at the national and international levels, and the joint commitment in support of strong domestic standards for cars and light trucks, will accelerate deployment of clean, efficient transportation technologies and enable achievement of climate targets in this key sector."
In August 2015, Ceres and Trillium Asset Management brought together investors representing $1.5 trillion in support of a strong federal standard for methane, and members of the BICEP coalition have also voiced strong support for robust greenhouse gas emissions standards.
About Ceres
Ceres is a nonprofit organization mobilizing business and investor leadership on climate change, water scarcity and other sustainability challenges. Ceres directs the Investor Network on Climate Risk (INCR), a network of over 110 institutional investors with collective assets totaling more than $13 trillion. Ceres also directs Business for Innovative Climate & Energy Policy (BICEP), an advocacy coalition of businesses committed to working with policy makers to pass meaningful energy and climate legislation. For more information, visit www.ceres.org or follow on Twitter @CeresNews.]]>
"We're disappointed with the action by the Court. We believe EPA has ample legal authority to pursue the Clean Power Plan. In addition, EPA has taken a measured and reasonable approach to pursuing GHG reductions, allowing states a great degree of flexibility in meeting the CPP targets over an extended compliance period between 2022 and 2030. PG&E will continue to support the Clean Power Plan and will move forward with the many steps we are taking to support California's commitments to reduce greenhouse gases." − Melissa Lavinson, Vice President of Federal Affairs and Policy, and Chief Sustainability Officer, PG&E Corporation
"Despite the Supreme Court's decision, National Grid still strongly supports EPA's Clean Power Plan. We stand by our belief that the CPP is not only reasonable and achievable, but imperative to meeting the nation's greenhouse gas reduction commitment established at COP21. As we continue to stress with our customers and industry partners, tomorrow's power grid and energy supply chain must look different than today's. Climate change is a global imperative, and we must find ways to transition our energy industry into a decarbonized future. That means every player—including system operators, generators, distributors, and policy makers—must collaborate at a level our country has never seen before." – Dean Seavers, President, National Grid U.S.
"Levi Strauss & Co. was proud to join 365 other companies and investors in support of the Clean Power Plan last year. We are surprised and disappointed in the Supreme Court's decision to stay the Plan while the lawsuit proceeds. Despite the decision, Levi Strauss & Co. is committed to reducing our greenhouse gas emissions, and will continue to advocate for policies that stem climate change." − Anna Walker, Senior Director of Global Policy and Advocacy, Levi Strauss & Co.
"The North Face was proud to join 365 other companies and investors in support of the Clean Power Plan last year. Despite the recent supreme court decision, The North Face is committed to moving forward with our recently announced commitment to 100% renewable energy by 2025, which demonstrates our deep commitment to a clean energy future." − James Rogers, Sustainability Manager, The North Face
"Modernizing our nation's electric supplies, as the Clean Power Plan would do, is good for Colorado, good for the country and good for the environment. By reducing the carbon pollution that is disrupting our climate, the Clean Power Plan will help New Belgium Brewing achieve our goals of clean energy, secure water supplies and sustainable agriculture supply chains. While the court's decision is disappointing, our company and our governor remain committed to renewable energy and a low-carbon economic future." − Jennifer Vervier, Director of Sustainability and Strategic Projects, New Belgium Brewing
"As one of the 366 businesses that publicly signed on to support the Clean Power Plan last year, Autodesk remains more committed than ever to design a low carbon future, powered by clean energy. Of all the challenges we face, none is more pressing and has greater implications for the international community than climate change. It is a systemic challenge that will require collaboration, as well as creativity, imagination, and innovation across sectors." − Lynelle Cameron, Senior Director of Sustainability and CEO, Autodesk Foundation
"Dignity Health recognizes that the emissions from thermal coal pose a significant risk to public health. We stood in solidarity with world leaders in Paris to advance a strong global deal to mitigate climate change, and the Clean Power Plan is an essential step toward that goal. The Supreme Court's decision to stay the Plan is incongruent with our nation's commitment to tackle the most pressing environmental concern of our time. In support of climate solutions, Dignity Health will continue to meet our renewable energy goal while urging for decisive leadership to take meaningful action to ratchet up, not halt, climate commitments." – Rachelle Reyes Wenger, Director, Public Policy & Community Advocacy, Dignity Health
"The Supreme Court decision to temporarily stay the Clean Power Plan is unfortunate but it will in no way impact Stonyfield's commitment to renewable energy, energy efficiency and reduction of our greenhouse gas footprint. We've been committed to our goals for years and we have no intention of slowing down our progress. The business case for clean energy is strong and that's the bottom line reality for Stonyfield." – Lisa Drake, Director of Sustainability Innovation, Stonyfield Farm Inc.
"The Clean Power Plan is essential to the viability of Colorado's ski industry and the 46,000 Coloradans who depend on the industry to put food on the table. The Supreme Court's stay doesn't change the reality that we experience almost one additional month of frost-free days today than we did in 1980. Furthermore, a changing climate represents a clear and present threat to the United States outdoor industry and the livelihoods of 6.1 million Americans. We look forward to the courts getting it right after careful consideration of the importance of clean air and a stable climate to the economy." – Matt Hamilton, Sustainability Director, Aspen Skiing Company
"The Supreme Court decision to put a stay on the Clean Power Plan won't put a stay on Clif Bar's commitment to a clean energy future, including the use of 100% green power for our facilities, the increased use of green power in our supply chain, and to our on-going commitment to achieving climate neutral business operations. The Supreme Court decision will not deter us from doing what is good for people's health and the health of our planet. We are not alone in this commitment; we stand with hundreds of other companies that support a clean energy future." – Elysa Hammond, Director of Environmental Stewardship, Clif Bar & Company.
"The Supreme Court decision to temporarily stay the Clean Power Plan is unfortunate but it will not impact Aveda's longstanding commitment to renewable energy, energy efficiency and reduction of our greenhouse gas footprint. Aveda regards climate change as a primary threat to the biological diversity we depend on for many of the ingredients in our products, and we see it as one of the most critical issues facing the world today. Aveda has been purchasing renewable energy for our primary manufacturing facility since 2006 and we have no plans to stop. We believe that this has been very good for our brand and that the business case for renewable energy will only get stronger over time." − Dominique Conseil, President, Aveda
"Calvert is disappointed by the Supreme Court's decision to stay the Clean Power Plan, because it could delay progress in addressing the urgent challenge of climate change. Despite the delay, we continue to see an inevitable global transition from an energy system based on fossil fuels that are dangerous to source and cause adverse environmental impacts to one based on renewable energy sources; a system that is safe, secure, clean, reliable, and affordable. Driven by technological advancements and concerns about climate change, this transition will continue to provide opportunities for investors and business alike." − Stu Dalheim, Vice President of Shareholder Advocacy, Calvert Investments
"US SIF is dismayed by the US Supreme Court's decision to temporarily stay implementation of the Clean Power Plan. As the US membership association for professionals, firms, institutions and organizations engaged in sustainable, responsible and impact investing, we support the Clean Power Plan because it will help unleash investment in clean energy sources, drive innovation, protect public health, benefit US consumers and bolster international efforts to curb climate change. While we are confident that the courts will uphold the rule, any undue delay in its implementation risks further buildup of dangerous greenhouse gas emissions in the atmosphere and introduces uncertainty to the investors who seek to finance America's clean energy future." − Lisa Woll, CEO, US SIF: The Forum for Sustainable and Responsible Investment
"The urgency of the need to move toward a low-carbon future seems to have been lost on the Supreme Court when they elected to stay the Clean Power Plan. The impact of carbon emissions is a real and immediate threat to the vitality of our nation and our planet—one that must be met by the public and private sectors alike—and we are deeply disappointed in the Court's shortsighted, ill-advised ruling." – Sonia Kowell, President, Zevin Asset Management
"The Clean Power Plan is a key component of the United States' plan to combat climate change. While the Supreme Court's announcement slows the process, it is only forestalling the inevitable. Businesses are resolved to act to combat climate change; investors are allocating capital to facilitate the transition to low-carbon economy; and the general public supports these efforts. In fact, close to three quarters of all Americans supporting climate action and climate policies like the CPP." – Tim Smith, Director of Environmental, Social, and Governance Shareowner Engagement, Walden Asset Management
"As radical as the Supreme Court action is, I still think we will look back on this development as a blip. We fully expect the CPP to weather these legal storms and to continue providing an important policy signal that we are transitioning to a clean energy future. The economic, social, political and market forces that are driving progress towards a low carbon economy and are supporting the CPP are very strong." – Jonas Kron, Senior Vice President and Director of Shareholder Advocacy, Trillium Asset Management
"On the international stage, where the United States is accountable for meeting the objectives outlined in Paris, we have an obligation to maintain the commitments we made and to further the new moment that emerged from Paris. The challenge to the Clean Power Plan from states and industry, and the stay from the Supreme Court, are contrary to these shared global goals of mitigating the worst impacts of climate change on poor and vulnerable communities throughout the planet. We recognize this is a temporary setback, yet investors expect our portfolio companies to maintain the momentum of the low carbon transition that is underway." − Sister Patricia Daly, OP Sisters of St. Dominic of Caldwell NJ and Tri-State Coalition for Responsible Investment
"Reducing carbon emissions through the Clean Power Plan is essential to fostering a stable business environment for investors. Shortsighted attempts to derail it threaten economic progress." − Leslie Samuelrich, President, Green Century Capital Management
"As an association of cooperative grocers, increasingly aware of the impact of climate change on our food system, we were surprised and disappointed in the Supreme Court decision to stay the Clean Power Plan. Given the Plan's vital importance at home, and for the integrity of the Paris climate agreement, we are advising our members to continue doing their part to advance a low-carbon future. The future of our industry depends on our leadership." – Robynn Schrader, CEO, National Co+op Grocers
"The world is watching and waiting to see if the US will stand behind the commitments we made in Paris. The Supreme Court's action to not back EPA's legal authority is extremely troubling and disappointing. We need to reassure the world that we are leaders in addressing the most critical problem of our time. HAPPYFAMILY is doubling down on our efforts to mitigate climate risk. We believe that all children are entitled to a happy, healthy future powered by clean, renewable energy." – Jessica Rolph, Founding Partner and COO HAPPYFAMILY
"The Supreme Court decision to temporarily stay the Clean Power Plan is unfortunate but it will in no way impact United Natural Foods Incorporated (UNFI) commitment to renewable energy, energy efficiency and reduction of our greenhouse gas footprint. UNFI is completely committed to our renewable energy goals and we call on other business leaders to keep their commitments and to demonstrate that leadership of the private sector." – Melody L Meyer, VP Corporate Social Responsibility, Policy & Industry Relations, United Natural Foods Incorporated
"Ameren Corp. is already making the transition to a cleaner and more diverse generation portfolio in a responsible manner," Ajay Arora, Ameren's vice president of environmental services and generation resource planning, said in a statement.
For American Electric Power, an electricity provider and one of the country's top coal users, the court case "doesn't change our focus on the diversification of our generation fleet," said spokeswoman Melissa McHenry. Those diversification plans include more natural gas and renewables," she said.
Calpine Corporation spokesman Brett Kerr said the move wasn't something the market actually anticipated. "We'll continue to be supportive of the Clean Power Plan," he said, pointing to a "natural evolution of the market anyway" away from less efficient coal plants. "So it won't really dictate us to change our strategy too much, which is to focus on being the premier operator of gas-fired plants in the United States." He said it's not in anybody's interest to have a federal implementation plan that dictates compliance for Texas.
Dominion Power spokesman David Botkins said, "We will work constructively with the Commonwealth and other stakeholders on a compliance plan that has our customers as the first priority, ensures reliability, and maintains a diverse mix of electric generation."
"Despite being surprised by the U.S. Supreme Court's Feb. 9 decision to stay the Clean Power Plan, DTE Energy Co. Chairman and CEO Gerry Anderson said in a Feb. 10 earnings call that he does not expect much to change in the short term for the company's DTE Electric Co. utility, which serves 2.1 million customers in southeastern Michigan… Anderson said the company is going full steam ahead on the investments to replace retiring plants, even with the stay of the EPA's Clean Power Plan. 'There might be people who don't like the Clean Power Plan and say 'slow down, stop,' but [state Sen.] Mike Nofs won't be one of them, and neither will we,' he said. Nofs is the primary advocate for the comprehensive energy reform in the state Legislature."
"Electric utilities are investing in clean energy and pursuing energy efficiency," Tom Kuhn, president of the Edison Electric Institute, the largest trade association of electricity providers, told a gathering of Wall Street investors less than a day after the Supreme Court announced its stay on the Clean Power Plan.
Exelon Corp., the nation's largest nuclear operator, said, "Regardless of this procedural development, the Supreme Court already has ruled that carbon is a pollutant the EPA must regulate. Our customers want reliable, clean and affordable electricity, and Exelon remains committed to helping drive the national transition to a low-carbon future."
FirstEnergy Corp. spokesman Todd Schneider: "While the legal challenges are addressed, we will work with our states if they chose to continue development of their compliance plans."
A spokesperson noted that Great River Energy was not among the utilities challenging the CPP because it believed the rule is consistent with earlier Supreme Court rulings on EPA's standing to regulate carbon dioxide under the Clean Air Act. "It was not our point of view that the rulemaking was contrary to existing law, so we were a little surprised," he said.
"We're still going to continue to look to ways to cost-effectively expand our commitment to renewable resources," said Ry Schwark, a spokesman for PacifiCorp, which… intends to "continue to work with states as they develop their plans."
Pahl Shipley, director of corporate communications at New Mexico-based PNM Resources Inc., said the stay doesn't affect the company's plan to lower the use of coal significantly by retiring two units at the San Juan Generating Station. "We'll monitor developments and continue to work with the state, but regardless of the outcome the company is moving forward to cut carbon emissions and add cleaner resources to our portfolio, including solar and natural gas," Shipley said.
PSEG "firmly believes that carbon emissions need to be reduced. We do believe that climate change is a serious issue; all the science points to that. It is real, and action needs to be taken; it's not going to wait for us to get our legal or political act together."
"We've communicated pretty clear in recent years that we believe the transition away from coal is going to happen," said Dave Eskelsen, a spokesman for Rocky Mountain Power, Wyoming's largest utility.
Southern California Edison expressed disappointment in the court's ruling but added that "SCE supports the Clean Power Plan and will maintain an active role in supporting California's efforts to reduce greenhouse gas emissions, including support for renewable energy, transportation electrification, energy efficiency and innovative, clean energy technologies."
"While the Supreme Court's ruling is a significant development in this case, the merits of the case have not been decided and the legal proceedings will continue," Minneapolis-based Xcel Energy Inc. said in a prepared statement. Regardless of the final outcome, Xcel said it will continue to work with states and stakeholders on plans "to create sustainable and affordable energy futures." Further, "[t]his approach will not only ensure compliance with existing and new regulations, but also take advantage of new technologies, recognize evolving customer needs and continue to drive improvements in how we produce and deliver energy," the Fortune 500 utility said.
"[The] state will continue gathering information while the court considers the Clean Power Plan. By March the division is expecting to complete a baseline outlook for 15 years of carbon emissions given impending changes including APS fuel conversions, growth in renewable energy and energy efficiency." – Eric Massey, Arizona Department of Environmental Quality
"As the world gets hotter and closer to irreversible climate change, these justices appear tone-deaf as they fiddle with procedural niceties. This arbitrary roadblock does incalculable damage and undermines America's climate leadership. But make no mistake, this won't stop California from continuing to do its part under the Clean Power Plan." – California Governor Edmund G. Brown Jr.
"I am extremely disappointed by the Supreme Court's decision today to block President Obama's Clean Power Plan," said Attorney General Harris. "The Court's decision, and the special interests working to undermine this plan, threatens our environment, public health and economy." – California Attorney General Kamala Harris
"Climate change is the most critical threat of our time. It is already warming the earth, raising our sea levels, and affecting our food supply - and it is our responsibility to stop it. Last year, Los Angeles made a firm commitment in our Sustainable City plan to end our dependence on coal by 2025, and we know that the future of our planet, economy, and children's health depends on cities across the world moving forward with us. I am disappointed that the Supreme Court is taking a step backwards by putting a hold on President Obama's sensible clean power plan. But here's the good news: no matter what happens on the federal level, local leaders will not ignore the danger of complacency, or the urgent need for immediate action." – Los Angeles Mayor Eric Garcetti
"While we're still reviewing the implications of the Supreme Court's decision, we remain committed to having the cleanest air in the nation. We'll continue to build upon the great strides we've made as a state — with the Clean Air Clean Jobs Act and our Renewable Energy Standard — to protect our public health and environment." – Colorado Governor John Hickenlooper
"It is prudent for Colorado to move forward during the litigation to ensure that the state is not left at a disadvantage if the courts uphold all or part of the Clean Power Plan. Because the Supreme Court did not say whether the stay would change the rule's compliance deadlines, Colorado could lose valuable time if it delays its work on the state plan and the rule is ultimately upheld." – Colorado Department of Public Health & Environment
"I believe in science - the data is real. Global warming is happening. Urgent action is needed on a national and an international basis to combat it. That's why the Supreme Court's ruling to pause implementation of the Clean Power Plan is disappointing and shortsighted. However, it is not a final decision on the legal merits of the Clean Power Plan, so it is important that we continue with preparations for compliance with the plan while these issues are being worked out in the courts… Connecticut is already a national leader on global warming - and that will not change. We're going to continue to cut carbon in a cost-effective, reliable manner while growing a clean energy economy. Through programs like the Regional Greenhouse Gas Initiative, we already have achieved significant reductions in carbon pollution from the electric sector, while growing our economies and maintaining reliable power. We have an obligation to combat greenhouse gases, and Connecticut is going to continue to do just that." – Connecticut Governor Dannel Molloy
"I am disappointed in yesterday's Supreme Court action on the EPA Clean Power Plan, but optimistic that it will be upheld when the courts review the merits of the case. We remain determined to move forward in responding to the issue of climate change. As a RGGI state, Delaware has led the country in working to curtail greenhouse gas emissions from the power sector, and we will continue to do so regardless of the decision to stay the Clean Power Plan rule. As a coastal state, we are acutely aware of the serious threats of climate change and sea level rise, and the Clean Power Plan represents a sensible and flexible approach for states to make the changes required to protect our economy and quality of life." – Delaware Governor Jack Markell
"Although we are disappointed with the Supreme Court's decision to delay implementation of the EPA's Clean Power Plan, we believe the courts will uphold this program after full consideration of the merits of the case. Massachusetts has made important progress on addressing the threat of climate change, and as this case proceeds we will work with our coalition of states and local governments to continue to defend the Clean Power Plan's reasonable, flexible and cost effective approach to lowering the greenhouse gas emissions of our country's power plants." – Massachusetts Attorney General Maura Healey
"While the Court's temporary stay is disappointing, it does nothing to diminish our resolve in Minnesota to keep moving forward on clean energy initiatives, including the development of our state's Clean Power Plan. President Obama's strong leadership, the nation-leading initiatives of some of our state's utilities, and my administration's commitment will assure our state's continued progress… We shouldn't need a federal edict to understand how vital it is that we keep doing everything in our collective powers to reduce harmful greenhouse gas emissions, improve energy efficiency, and advance Minnesota's clean energy economy." – Minnesota Governor Mark Dayton
"New Hampshire has long led efforts to cut carbon emissions and combat climate change so that we can have the cleaner and safer environment that our people need to live healthy, productive lives – and it's crucial that other states follow our lead and take responsibility for the pollution that they cause. Through programs such as the Regional Greenhouse Gas Initiative, our region is showing that it is possible to protect public health, spur energy innovation, and promote affordable, reliable energy sources for our economy. That's why I have been a strong supporter of the Clean Power Plan, and the Supreme Court's decision to delay this important step forward is very disappointing." – New Hampshire Governor Maggie Hassan
"We are confident that once the courts have fully reviewed the merits of the Clean Power Plan, it will be upheld as lawful under the Clean Air Act. Our coalition of states and local governments will continue to vigorously defend the Clean Power Plan —which is critical to ensuring that necessary progress is made in confronting climate change." – New York Attorney General Eric Schneiderman and Joint Statement of States and Counties
"The Supreme Court's decision to temporarily halt President Obama's Clean Power Plan is a disappointing setback in the nation's efforts to address climate change. The plan should absolutely be upheld on its merits, and New York State remains committed to moving forward with our own actions to protect the environment and the public health. From dedicating $5 billion to advance the clean tech economy, to requiring that 50 percent of electricity in the state come from renewable sources by 2030 and limiting greenhouse gas emissions in line with the global Under 2 MOU, New York is leading by example in addressing one of the most pressing challenges of our time. But this issue requires a global response – and the Clean Power Plan is crucial to ensuring a cleaner, greener, and safer future for all." – New York Governor Andrew Cuomo
"Even though the Clean Power Plan is going through a battle in the courts, Oregon has been and continues to be committed to national efforts to reduce greenhouse gas emissions from the power sector. Oregon is well-positioned to comply with the EPA targets because there have already been early actions in Oregon through investments in energy efficiency, renewable energy development, and moving away from coal." – Oregon Governor Kate Brown
"The rule's in effect, the rule hasn't gone away. We, at least currently, see a path to submitting [a state plan] on Sept. 6… It's clear that renewables are the future. What the Clean Power Plan is calling for is really good business." – Pennsylvania DEP Secretary John Quigley
"Pennsylvania will continue planning and engagement with stakeholders on the Clean Power Plan, pending final decision of this issue by the Supreme Court. We will continue to closely monitor the ongoing legal process." – Jeff Sheridan, Spokesperson for Pennsylvania Governor Tom Wolf
"This is incredibly disappointing news. The forces fighting President Obama's common sense plan are those with a stake in the dirty energy status quo that is of polluting our air, water, and forests and contributing to global climate change. Their desperate attempt to make a profit at the expense of our health and the future of the planet is standing in the way of serious action to combat climate change and preserve a livable planet for future generations… It is no surprise that the suit over the Clean Power Plan was brought by proponents of the coal industry. That industry, and those who support it, will do everything they can to boost their profits, even if it means imperiling our planet's future. This is just one more example why Vermont should not be in the business of supporting the coal industry and should divest from coal stocks." – Vermont Governor Peter Shumlin
"Over the last several months my administration has been working with a diverse group of Virginia stakeholders that includes members of the environmental, business, and energy communities to develop a strong, viable path forward to comply with the Clean Power Plan. As this court case moves forward, we will stay on course and continue to develop the elements for a Virginia plan to reduce carbon emissions and stimulate our clean energy economy." – Virginia Governor Terry McAuliffe
"Yesterday's Supreme Court ruling on the Clean Power Plan is very troubling, surprising, and disappointing. And it inexplicably breaks with past rulings in which the high court has called for federal rules to limit the carbon pollution that is driving climate change… We cannot afford to wait any longer for federal action to address carbon pollution and transition to clean energy. Here in Washington state we are unfortunately already seeing the harmful impacts of climate change, and we will continue to take steps that reduce carbon and to lead the nation in clean energy. The EPA's Clean Power Plan remains a crucial tool to ensure that every state must do its part, and to empower them to do so." – Washington Governor Jay Inslee
"Clean energy investment is poised for rapid growth," wrote the report authors, citing the cost competitiveness of renewables such as solar and wind and escalating investor interest in financing climate solutions. "While the scale of this new investment opportunity is massive, it is dwarfed by the capacity of global financial markets to unleash the needed investment."
The report, Mapping the Gap: Road from Paris, was announced at the UN Investor Summit on Climate Risk, a gathering of 500 global investors this week organized by Ceres, the United Nations Foundation and the United Nations Office of Partnerships held in the wake of the historic climate agreement last month in Paris.
Among the report's key highlights:
"The clean energy industry could make a very significant contribution to achieving the lofty ambitions expressed by the Paris Agreement," BNEF Chairman Michael Liebreich said, citing the seven-fold growth in renewable energy installations in the past decade alone. "To do so, however, investment volume is going to need to more than double, and do so in the next three to five years. That sort of increase will not be delivered by business as usual; closing the gap is both a challenge and an opportunity for investors. That is what this report is about."
The report highlights the critical role of supportive government policies that will enable more renewables investments, including the Paris climate accord's "ratchet" mechanism, which will help ensure that every country's commitments to reduce carbon pollution become more ambitious over time.
"There is huge opportunity for expanded clean energy investments today," said Sue Reid, Vice-President of Climate & Clean Energy at the nonprofit group Ceres. "But to fully bridge the investment gap, policymakers worldwide need to provide stable, long-lasting policies that will unleash far bigger capital flows. The Paris agreement sent a powerful signal, creating tremendous momentum for policymakers and investors to take actions to accelerate renewable energy growth at the levels needed."
The report's findings underscore that clean energy financing will soon no longer be considered 'alternative' and will begin to more fully resemble other, more established infrastructure sectors such as transportation or real estate, from a financial structure perspective. As clean energy moves firmly into the mainstream, it will inevitably account for expanding and significant shares of infrastructure investors' portfolios.
"These investments will inevitably find their way into the portfolios of pension funds, insurance companies and other infrastructure investors," said Ken Locklin of Impax Asset Management, who partnered on the research of Mapping the Gap. "Clean energy is a critical part of 21st infrastructure, so this transformation is fundamental to our investment future."
About Ceres
Ceres is a nonprofit sustainability organization mobilizing business and investor leadership on climate change, water scarcity and other global sustainability challenges. Ceres coordinates the Investor Network on Climate Risk, a network of more than 110 institutional investors with collective assets totaling $13 trillion. For more information, visit www.ceres.org or follow on Twitter @CeresNews.
About Bloomberg New Energy Finance
Bloomberg New Energy Finance (BNEF) provides unique analysis, tools and data for decision makers driving change in the energy system. With unrivalled depth and breadth, we help clients stay on top of developments across the energy spectrum from our comprehensive web-based platform. BNEF has 200 staff based in London, New York, Beijing, Cape Town, Hong Kong, Munich, New Delhi, San Francisco, São Paulo, Singapore, Sydney, Tokyo, Washington D.C., and Zurich.
For more information on Bloomberg New Energy Finance: about.bnef.com]]>
Speaking just days after scientists confirmed that 2015 was the hottest year on record, UN Secretary-General Ban Ki-moon called on investors to help achieve a doubling in global clean energy investments by 2020. While those investments hit a record high of $329 billion in 2015, significant gaps remain in growing clean energy at the levels necessary to meet the Paris climate accord's goal of limiting global temperature rise to below 2 degrees Celsius.
"Today, I call on the investor community to build on the strong momentum from Paris and seize the opportunities for clean energy growth. I challenge investors to double – at a minimum – their clean energy investments by 2020," Ban told the crowd of financial leaders, who collectively represented more than $22 trillion in assets. "Sustainable, clean energy is growing, but not nearly fast enough to prevent excessive global warming that would trigger profound economic disruption and human suffering. The investor community is of critical importance if we are to move from aspirations to action."
Organized by the nonprofit Ceres, the United Nations Foundation and the United Nations Office for Partnerships, the all-day meeting focused on catalyzing a shift in the global economy toward exponentially more clean energy and far less carbon – fast enough to meet the Paris climate accord's long term objective of reducing net greenhouse gas emissions to zero in order to avoid dangerous climate warming.
"Investors are better positioned than ever before to address climate risks and seize the economic opportunities presented by clean energy," said Mindy Lubber, president of Ceres and director of its Investor Network on Climate Risk (INCR), the U.S. network of pension funds and asset managers working to address the financial risks of climate change. "Ultimately, global investment portfolios need to shift far more capital to low-carbon business activity and away from risky high carbon sectors that may perform poorly in the years ahead."
Lubber called on all investors globally to set ambitious clean energy investment commitments; establish clear goals for reducing carbon risk exposure in their portfolios; encourage regulators worldwide to implement mandatory climate risk disclosure requirements; and to continue advocating for policies such as economically meaningful carbon pricing and ending fossil fuel subsidies.
"Cities and businesses recognize the economic benefits that come with fighting climate change, and they're setting a great example by establishing clear goals and measuring the impact of their work," said Michael R. Bloomberg, founder of Bloomberg LP, three-term Mayor of New York City, United Nations Secretary General's Special Envoy for Cities and Climate Change, and chair of the Financial Stability Board's Task Force on Climate-related Financial Disclosures, who joined a discussion on climate risk disclosure. "The more reliable information investors have about climate change, the easier it is for them to make informed decisions, and that will help drive more financing to projects that reduce carbon pollution and promote sustainable economic growth."
While acknowledging that stronger, more comprehensive actions are needed, dozens of investors speaking at the Summit touched on progress they are making in these areas and innovative climate solutions already underway.
"Changes in the marketplace and the worldwide commitment to address global warming are creating enormous opportunities in low-carbon industries that can't be ignored," said New York State Comptroller Thomas P. DiNapoli, who last month launched a new $2 billion low-carbon index fund as part of a $5 billion commitment to sustainable investments. "The climate threat we all face puts our investments at risk and makes the creation of the low-carbon future critical to our environment, public health and the global economy."
"On the heels of our 2014 commitments to double clean energy investments to 2 billion euro, we now want to raise the bar even further by quadrupling that increase, to 5 billion euro, by 2020," said Erik van Houwelingen, board member of ABP, a major Dutch pension fund. "We're also aiming to reduce the carbon footprint of our 100 billion euro listed equity portfolio by 25 percent and doubling our investments in high sustainable companies that deliver solutions to social and environmental issues like climate change. We encourage others to also set ambitious goals in contributing to the transition towards a low carbon economy."
"We are committed to working to drive up corporate demand for clean energy by putting pressure on big listed corporations to set clear targets for switching away from fossil fuel dependent energy sources and towards 100% renewable electricity supplies," added Philippe Desfossés, CEO of French public sector pension fund ERAFP. " This kind of shift is fundamental and must be accelerated if we are to secure a future business model that fits within a 1.5C pathway. We have also measured the carbon footprint of our stocks portfolio since 2014, from which we know that last year our portfolio was 16% less carbon intensive than our own benchmark."
A key focus of the Summit was exploring the types of capital flows necessary and increasingly available to actualize the carbon-reducing commitments made in Paris by 187 countries – commitments that the International Energy Agency estimates would require investments of $16.5 trillion by 2030. Last week, Standard & Poor's predicted the global market for renewables and green finance – especially in countries like India and China – will accelerate dramatically in the next 15 years as investors respond to the dual incentives of a renewed focus on climate polices from national governments and the rapidly falling price of clean technologies.
Among the most significant investment opportunities in the coming years is the electric power sector which – according to a study released today by Ceres and Bloomberg New Energy Finance (Mapping the Gap) – presents a $12 trillion opportunity for renewable energy alone over the next 25 years, with the biggest opportunities being solar and wind power in emerging markets.
Michael Liebreich, chairman and founder of Bloomberg New Energy Finance, says the report makes clear that renewable energy such as wind and solar are poised for a takeoff due to declining costs that often make them fully competitive with fossil fuels, even without subsidies. "The clean energy industry could make a very significant contribution to achieving the lofty ambitions expressed by the Paris Agreement," he said. "To do so, however, investment volume is going to need to more than double, and do so in the next three to five years. That sort of increase will not be delivered by business as usual; closing the gap is both a challenge and an opportunity for investors."
The study details how the global renewable energy buildout in the power sector can be financed, and estimates that investment in new renewable energy projects in the electric sector are expected to surge in the next two decades by nearly $500 billion per year above current investment levels. The study also highlights near-term investment needs in clean energy – specifically, global clean energy investment in the electric sector should more than double from current levels by 2020 in order to achieve COP21's temperature goals.
Ceres' Investor Summit on Climate Risk builds on the growing momentum from the financial community, including dozens of investors attending the Paris climate talks to call for a strong climate agreement and 400 global investors calling last fall for a meaningful carbon price and the phasing out of fossil fuel subsidies.
The Summit is being live-streamed at webtv.un.org and followed on Twitter with @CeresNews and #InvestorSummit. For more information, visit www.ceres.org/investorsummit.
About the 2016 Investor Summit on Climate Risk
Held biennially at the United Nations since 2003, the Investor Summit on Climate Risk is the preeminent forum for institutional investors to discuss the implications of climate change for capital markets and their portfolios. The 2016 event convenes investors, business leaders and others seeking to accelerate the shift to a clean energy future, and tackle the risks posed by climate change. Ceres, the United Nations Foundation, and the United Nations Office for Partnerships are co-hosting the Summit.
About Ceres
Ceres is a nonprofit sustainability organization mobilizing business leadership on climate change, water scarcity and other global sustainability challenges. Ceres has helped organize seven Climate Investor Summits at the UN, the first in 2003, and introduced the term "climate risk" into the financial lexicon in 2002. Ceres directs the Investor Network on Climate Risk (INCR), a network of more than 110 institutional investors with collective assets totaling more than $13 trillion. Ceres also directs BICEP, an advocacy coalition of 36 businesses committed to working with policy makers to pass meaningful energy and climate legislation. For more information, visit www.ceres.org or follow on Twitter @CeresNews.]]>
The historic agreement includes unprecedented GHG-reducing pledges from 186 countries representing more than 95 percent of global greenhouse gas emissions; a binding commitment to limit global temperature rise to well under 2 degrees Celsius, along with a stretch goal of 1.5 degrees; and a long-term goal of achieving peak global emissions as soon as possible and rapid reductions thereafter to achieve net zero emissions by the second half of the century.
"Today Paris lived up to its name as the City of Lights. This historic agreement sends a spark, a signal, that the low-carbon global economy has officially arrived," said Lubber, president of Ceres and director of the Investor Network on Climate Risk (INCR), which is comprised of 115 institutional investors collectively managing $13 trillion in assets.
"Given the global reach of the agreement and the follow-up mechanisms and transparency behind it, I'm hopeful we could see trillions – not just billions – pouring into the low-carbon economy worldwide every year. But, of course, far more work is needed by governments, the private sector and other parties to turn this document into significant on-the-ground action. We must all collectively hold ourselves accountable for bringing this agreement to life."
Ceres will be hosting the 2016 Investor Summit on Climate Risk at the United Nations on January 27, 2016 in New York City.
Ceres had a major role mobilizing business and investor leadership in support of a strong climate agreement. In coordination with Ceres, major U.S. banks, global apparel companies, global food and beverage firms and hundreds of investors worldwide issued public statements calling for a strong climate agreement in Paris. Details on those activities can be found at www.ceres.org/cop21.
Commissioned by Ceres and authored by electric utility expert and investment banker Peter Kind, Pathway to a 21st Century Electric Utility Model proposes a vision for accelerating the transition to a reformed electric system that benefits all stakeholders, including customers, competitive third party providers (e.g.. companies deploying rooftop solar), policymakers, utilities and their investors.
"Our current path is not leading us toward a 21st century utility that provides safe, reliable and affordable energy, and meets the needs of customers, society and utility investors. We need a pathway that incentivizes the right choices for both more efficient use of clean energy and the deployment of capital," said Peter Kind, executive director of Energy Infrastructure Advocates LLC, who also authored the 2013 Edison Electric Institute (EEI) Paper: Disruptive Challenges: Financial Implications And Strategic Responses To A Changing Retail Electric Business.
The report proposes comprehensive reform measures that would help achieve clean energy goals and long-term industry stability:
"This report proposes an approach that will align an electric utility's business model with society's need to decarbonize the power sector and therefore unleash more investment in clean energy resources," said Dan Bakal, director of Electric Power at Ceres. "Electric utilities are key players in deploying capital in clean energy at the speed and scale needed to limit climate changing pollution. Achieving such goals in the US power sector and across the world globally is integral to achieving Ceres'Clean Trillion objective of boosting clean energy investments globally by an additional $1 trillion a year to avoid catastrophic climate warming."
Addressing Fixed Charges: Pathway to a 21st Century Electric Utility Modelincludes notably different recommendations from the report author's previous Edison Electric Institute 2013 paper, Disruptive Challenges. In response to declining revenues as customers consume less power, the earlier EEI paper advised utilities to:
"Institute a monthly customer service charge to all tariffs in all states in order to recover fixed costs and eliminate the cross-subsidy biases that are created by distributed resources and net metering, energy efficiency, and demand-side resources."
Since 2013, utilities in dozens of states have brought forward numerous rate cases proposing to significantly raise these mandatory monthly fixed fees, drawing opposition from National Association of State Utility Consumer Advocates, the American Association of Retired People, the National Association for the Advancement of Colored People, the Christian Coalition, and countless others working to advance renewable energy, energy efficiency and conservation in America's electric power sector.
Pathway to a 21st Century Electric Utility Model takes a far cooler stance on fixed charges, stating:
"The policy of adopting monthly fixed-charge increases has several flaws—principally that such increases would remove the price signals needed to encourage energy efficiency and efficient resource deployment. This paper proposes several solutions to address the utility revenue challenge as an alternative to increased fixed charges, such as inclining block rates, reforming net energy metering, use of bidirectional meters, time-of-use rates, accountability incentives and identifying new revenue opportunities for utilities."
Energy Efficiency: The report also cites energy efficiency as one of the most significant opportunities to enhance both customer value and environmental benefit. The American Council for an Energy Efficiency Economy (ACEEE), for example, estimates that a 40 to 60 percent reduction of electricity sales could be achieved by 2050 by harnessing the full suite of opportunities. Because increased efficiency can strike at the revenue base of utilities, financial incentives must be designed and deployed so that utilities are not penalized financially for encouraging energy efficiency.
Download the report here: http://www.ceres.org/resources/reports/pathway-to-a-21st-century-electric-utility/view
About Ceres
Ceres is a nonprofit organization mobilizing business leadership on climate change, water scarcity and other global sustainability challenges. Ceres directs the Investor Network on Climate Risk (INCR), a network of more than 110 institutional investors with collective assets totaling more than $13 trillion. Ceres also directs BICEP, an advocacy coalition of 36 businesses committed to working with policy makers to pass meaningful energy and climate legislation. For more information, visit http://www.ceres.org or follow on Twitter @CeresNews.]]>