The U.S. Electric Utility Industry Survey by McGuireWoods LLP, which was
finalized late in the fourth quarter of 2008, surveyed 249 CEOs of utility
companies throughout the United States. Below are some of the findings that seem
- 85% of the energy CEOs predict that the country could begin seeing an
energy crisis within five years.
- 69% of the energy CEOs state that to avert an energy crisis there needs
to be improved regulatory and legislative framework, so companies can invest
- 88% of the energy CEOs think that existing electric transmission lines
need to be expanded and upgraded.
- In the next 1-3 years, 37% of the energy CEOs plan to allocate capital
investments in maintenance of existing energy infrastructure; 34% in
building new generation assets; and 29% in building new
- 1/3 of CEOs believe energy efficiency and demand management will satisfy
the projected growth in U.S. demand. Yet, only 2% of the energy CEOs believe
that mandatory demand management, efficiency and conservation measures will
avert an energy crisis.
- 90% of the energy CEOs believe that nuclear investment is critical to
addressing the energy shortfall. CEOs would like to see the proportion of
America’s electric energy coming from nuclear power to grow from its current
level of 20% today to 46% by 2028.
- 50% of CEOs believe clean coal technologies will become a viable cost
effective means of coal generation.
- However, 60% of the energy CEOs believe US customers are not willing to
pay higher costs for low carbon electric generation technologies such as
nuclear, wind or clean coal sequestration.
- The energy CEO’s believe that 85% of the public; 75% of the media and
69% of the elected officials do not understand the real costs and related
effects of using more renewable as an energy source.
- 57% of the energy CEOs believe tax incentives for developing alternative
or renewable resources is important to address energy challenges. However,
most CEOs do not believe renewable energy is a long term cost effective
solution to meeting energy demand.
For additional information, contact
Joanne Katsantonis, chair, Energy & Utility practice. To view the press release, please click here.