Exelon Chairman and CEO John W. Rowe, in testimony today before the U.S.
Senate Environment and Public Works Committee, called for passage of a
comprehensive climate and energy bill to address the greenhouse gas
issue and put our nation on the path to a low-carbon future.
In his testimony, Rowe called for an economy-wide bill with realistic
targets and timetables, an effective cost-containment mechanism, and a
method for awarding allowances to electricity delivery companies to
prevent dramatic consumer rate increases.
“We thank Senators Boxer and Kerry and this committee for moving forward
with a serious response to climate change,” said Rowe. “We are
encouraged by the progress of this legislation, and we implore the
members of this committee to redouble their efforts to pass a bill that
slows, stops, and ultimately reduces greenhouse gas emissions while
protecting the American economy.”
Rowe also said that one of the most important aspects of cap-and-trade
legislation is that it encourages pursuing the least expensive options
for reducing carbon emissions first. While any method will cost money,
the alternatives to cap-and-trade will cost more.
“Without prompt action, the utility industry will be caught in a carbon
purgatory: we will lack the certainty we need to make the large-scale
investments in clean generation that are necessary to both keep the
lights on and meet the challenges associated with climate change,” Rowe
said. “We firmly believe that cap-and-trade legislation can accomplish
our national environmental objectives while ensuring robust economic
growth.”
Rowe urged the committee to include measures to ensure that utility
customers are protected from sharp rates increases and the economy will
not be saddled with major new costs.
“To moderate price increases to consumers, Exelon supports the free
allocation of 40 percent of emissions allowances to local delivery
companies, which will sell the allowances and use the proceeds to
mitigate costs for customers,” said Rowe. “To be abundantly clear,
neither Exelon nor its shareholders will profit from the allowances to
local delivery companies.”
Rowe also called for additional provisions to encourage development of
low-carbon nuclear energy.
“New nuclear plants will both help us meet our future energy needs and
also serve as an important source of green jobs,” Rowe said. “For every
1,000 megawatts of capacity, nuclear power provides 550 operations
jobs--more than coal, wind or natural gas.”
Exelon is not waiting to address the growing danger of climate change.
Last year, the company launched Exelon 2020, an environmental and
business strategy to reduce, offset or displace more than 15 million
metric tons of greenhouse gas emissions per year by 2020. In April 2009,
Exelon announced that it had reduced its greenhouse gas emissions by
more than 35 percent from 2001 to 2008.
“We look forward to working with the Senate to enact comprehensive
climate legislation in 2009 or early 2010,” said Rowe. “Climate change
truly is one of the greatest challenges facing our nation and the world
in this new century, and nothing is more important for our nation’s
economic, energy and environmental future than dealing with it. Now is
the time to get on with it.”
Rowe is the electricity industry’s longest-serving chief executive, with
nearly 26 years as a utility CEO. Rowe was among the first CEOs in the
industry to focus on climate change, first testifying before Congress on
the potential effects of carbon emissions in 1992. He currently serves
as co-chair of the bipartisan National Commission on Energy Policy, and
previously chaired the Edison Electric Institute and the Nuclear Energy
Institute.
Rowe’s written testimony submitted to the committee is available on the
Exelon Web site at: www.exeloncorp.com/aboutus/speakersbureau.
Exelon Corporation is one of the nation’s largest electric utilities
with approximately $19 billion in annual revenues. The company has one
of the industry’s largest portfolios of electricity generation capacity,
with a nationwide reach and strong positions in the Midwest and
Mid-Atlantic. Exelon distributes electricity to approximately 5.4
million customers in northern Illinois and southeastern Pennsylvania and
natural gas to approximately 485,000 customers in the Philadelphia area.
Exelon is headquartered in Chicago and trades on the NYSE under the
ticker EXC.
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