Edison Electric Institute

THE EDISON ELECTRIC Institute (EEI) is an association or a trade group representative that seeks to represent people and organizations owning stock in power companies. The stock companies represented by the EEI directly represent 95 percent of the power consumers served by stock companies generating electric power in the United States, which produce about 70 percent of the total power produced in the United States. The other 30 percent is produced by member cooperatives, by the Tennessee Valley Authority, [Page 353]or other government-owned generating facilities, or by privately owned companies. All of the companies that are members of the EEI are American-owned. In addition, 65 international electric companies are affiliate members. The 170 industry suppliers and related organizations are associate members.

The chair, president, and CEO of PNM Resources, Jeff E. Sterba, was chosen as the chairman of the EEI in June 2007. PNM is the parent company for Public Service Co. of New Mexico. In 1998, he was chosen as executive vice president of USEC, a global energy company headquartered in Maryland. In 2000, he returned to PNM as CEO. At the same time, Sterba was chosen to lead the EEI, its member associations chose David M. Ratcliffe and Anthony F. Earley Jr. as first and second vice chairmen, respectively. David Ratcliffe is currently chairman, president, and CEO of Atlanta-based Southern Company, which is a holding company that owns Georgia Power, Alabama Power, Gulf Power, Mississippi Power and other operating power and service companies. Anthony E Earley Jr. is chairman and CEO of Detroit's DTE Energy.

Serba recognized that he was chosen to lead the EEI in a time of great changes in the power industry, saying in a prepared statement, that the Energy Policy Act of 2005 would be implemented soon. Although its provisions deal with matters that can override environmental concerns and interests, Serba was also aware of great challenges involving climate change and the need for energy efficiency. The EEI was organized in 1933. It works with all of its members, affiliates, and associate members, as an advocate of their interests. This means that the EEI promotes the development and adoption of equitable public policies before legislatures and before regulatory bodies.

Because the EEI is an industry association, it has command of the industry's critical data, reports, problems, and needs. With this information on the industry and its contacts, it can effectively lobby the U.S. Congress, state legislatures, federal and state government agencies, or including opinion leaders. The EEI stock analysts who advise investors may also be called upon to provide information to the news media to counter the claims of opposing consumer groups or environmentalist groups. Lobbying activity of EEI is extensive. It is the advocate for its numerous members, and has lobbied on legislation concerning the use of renewable fuels, energy efficiency, power plant security (especially against the threat of terrorism), and on environmental issues, including climate change.

A subject of particular interest has been its lobbying for the use of power lines as a medium for highspeed internet service and communications. Some internet media providers such at AT&T have lobbied for net neutrality, for all of the providers and users of the internet to be treated the same. In opposition have been some phone companies and cable companies that want to charge for internet traffic. By the end of 2007, the EEI had spent over $5 million to lobby various agencies of the federal government on the subject of climate change. Organizations lobbied included the White House Budget Office, the Environmental Protection Agency, the Energy Department, the Federal Energy Regulatory Commission, and the Federal Communications Commission.

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