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JUNE 2017 Tom Kuhn, Kevin Fitzgerald PUBLIC UTILITIES Rudy Wynter, Paula Glover Peter Terium, Jim Laurito FORTNIGHTLY Mike Caranfa, EnAct “In the Public Interest” Jane Lewis-Raymond David Owens Makes His Mark First Recipient of PUF’s Owen Young Award 1706 Cover-r3.indd 1 5/20/17 9:22 AM We are the Next Generation (NxG) Utility: The future of innovation is here. Learn more at burnsmcd.com/NxGPUF17. T&D How™ VIDEO SERIES Water Filtration Sleeve \ Composite Pole Assembly Drone Site Inspection \ And more Offices Worldwide Burns & McDonnell is pleased to sponsor this series of videos, produced by Penton and in cooperation with our utility clients. Corporate safety is each company’s responsibility. Consult applicable codes and industry standards for your unique job situation. These videos may not apply to each location or situation. 1701 ads.indd 80 12/21/16 7:50 AM In PUF, Impact PUBLIC UTILITIES We return to twice monthly. The mid-month digital the Debate FORTNIGHTLY PUF 2.0 debuts June 12. “In the Public Interest” June 2017 • Volume 155, No. 6 4 From the Editor: Industry Sage David Owens Retires 8 Letters to the Editor: Response to Mitnick re/ Cold Hard Truths, By Ed Smeloff ARTICLES PUF GLOBAL ENERGY POVERTY SERIES 10 David Owens Makes His Mark 54 When War Leaves a Wake of Energy Poverty With Tom Kuhn, Jim Laurito, Hilda Pinnix-Ragland, By Marilyn Smith, Executive Director, EnAct Kevin Fitzgerald, Ralph Cavanagh, Paula Glover 20 Just Two FERC Commissioners SHORT ESSAYS Acting Chairman Cheryl LaFleur and Commissioner Colette Honorable 58 Building Energy Workforce of the Future By Sue Kelly, APPA 26 Rudy Wynter, President and COO FERC Regulated Businesses and New Energy 60 Moody’s Investors Service: Solutions, National Grid Low-Cost Wind Brings New Opportunities Q&A with Jairo Chung 30 Peter Terium, CEO, innogy, and Klaus Grellmann, Managing Director, innogy Consulting 62 Future of EE is Now By John Hargrove, Michael Mernick, 34 Seeking Answers Down Under Michael Volker, Sara Conzemius By Tanuj Deora, SEPA and John Pang, ScottMadden 65 Nuclear Closures 40 Jane Lewis-Raymond, Partner, Parker Poe LLP By David Boonin 44 Mike Caranfa, Senior Vice President, 66 AEIC Power Delivery Committee Meets Sales & Strategy of Smart Energy in By Terry Waters Honeywell Home and Building Technologies 48 EPRI Podcast: Advanced Coal and Fossil CCS 70 Picture Energy: By Aimee Mills with Jeff Phillips and Abhoyjit Bhown Alliance to Save Energy’s EE Global Conference, May 8-9, Washington, D.C. 50 Leadership Lyceum Podcast: Shareholder Activism 72 Energy Memories: By Tom Linquist with Chris Young, Jackalyne Pfannenstiel Managing Director, Contested Situations Group, 74 Pic of the Month: Credit Suisse USEA Visits Emirates The cover of May’s PUF featured the last drawing of Thomas Edison facing left. This cover of June’s PUF features another great of our industry, David Owens, facing right. David, executive vice president of the EEI, retires this month and is the first recipient of PUF’s Owen Young Award. JUNE 2017 PUBLIC UTILITIES FORTNIGHTLY 3 1706-TOC-r2.indd 3 5/20/17 9:25 AM FROM THE EDITOR Industry Sage David Owens Retires Honoring Him with Our First PUF’s Owen Young Award BY STEVE MITNICK fi rst met David Owens in the mid-eighties. At the time, I was surprised the Edison Electric Institute had an intellect like David on staff . Expected an David has been I industry association to be a lobbying group, mainly, with member services the industry’s mixed in. I had a lot to learn. debater-in-chief. During my four decades in the industry, EEI has been a vigorous debater in the many scrums about utility regulation and policy. It has sponsored thorough for devoting his powerful intellect to the research and off ered detailed recommendations. Depending upon where you sit, public interest. you might have agreed or disagreed with its positions. But you likely found the Owen Young was general counsel of work rigorous and well-considered. And you likely observed that David was the General Electric, GE, when he founded driver for the work and its eloquent spokesman. our company Public Utilities Reports in 1914. Indeed, David has been the indus- to have little), touched them with his Young was working with the try’s debater-in-chief. Th is month, caring, and made a diff erence in their National Civic Federation to develop uncharacteristically, he’s decided to put careers, in their lives. Did he touch your and submit to Congress model leg- down the mic for good. career and life too? islation on utility regulation. Th e You also likely observed that David One always hears how tireless David often-drastic inconsistency from state exuded passion for helping people and has been. How he constantly travelled to state troubled both utility leaders the public, through his intellectual to talk, to listen, to persuade, to be and regulators: prowess. All while he practiced compas- persuaded. Th ough I believe that David “Of more immediate concern was sion, religiously, with both proponents was everywhere – from NARUC con- some means of simplifying, or keeping and opponents of his positions. ferences to board rooms – because he abreast of, the diverse laws and regula- Th ere are hundreds, nay, thousands, wanted to be everywhere. Because he tions aff ecting the burgeoning public who would tell you a story about how wanted to learn all he could learn about utilities. As power systems crossed state David took the time (when he seemed utility regulation and policy, and to lines, which was rapidly becoming teach all he could teach. the rule rather than the exception, the Steve Mitnick is Editor-in-Chief of Public Th e Public Utilities Fortnightly team multiplicity of jurisdictions to which Utilities Fortnightly and author of the book considered how we could honor David. these natural monopolies were subject “Lines Down: How We Pay, Use, Value Grid We do so by selecting him as the fi rst was not merely an annoyance; it was Electricity Amid the Storm.” recipient of PUF’s Owen Young Award, a source of confusion to investors and » 4 PUBLIC UTILITIES FORTNIGHTLY JUNE 2017 1706 From the Editor-r3.indd 4 5/20/17 12:25 PM WHAT IF you could achieve sustainable results in an ever-changing market? Our expertise in customer engagement, grid modernization, advanced automation and cost reduction can increase revenue and improve performance. At Navigant, we help turn what if into what is. Visit Navigant.com/energy PROFIT FROM EXPERIENCE 1701 ads.indd 2 12/16/16 5:18 PM management, and so, too often, of 40 Innovators. Debuting in November’s public suspicion. [Young found] the To make the list, Public Utilities Fortnightly, we’ll situation profi table to no one save the PUF’s Top 40 announce our selections of the forty politician in search of an issue…” most innovative infl uential thought- From Owen D. Young and American Innovators, in sum, leaders in utility regulation and policy Enterprise, by Josephine Young Case you need to be in 2017. and Everett Needham Case, David R. a David Owens. We’ll be issuing the criteria shortly, Godine Publisher Inc., 1982. the specs that will guide our picks. Th at Th e initiative, to have Congress will support our analysis of the greatest enact national model legislation on util- of the United States, engineered the thinkers and doers in utility regulation ity regulation, ultimately failed: settlement of Germany’s World War I and policy. “… Th e next best thing was to pro- reparations. But, to make the list, in sum, you vide a guide for utilities and investors And, as one of the nation’s most need to be a David Owens. A powerful in the form of case reports on state laws famous and respected personalities, intellect that’s impacting the course of and relevant decisions of the courts and Young was expected to become presi- our industry. public service commissions.” dent of the United States in 1932. He Coming up with the list should be From Owen D. Young and American declined to run, in favor of his friend a blast. And you have a key role. Send Enterprise. Franklin Roosevelt. me your nominations, to mitnick@ Public Utilities Reports was thus David Owens also was a friend of a fortnightly.com. Tell me why John Doe founded. After a few years had passed, president of the United States. When or Jane Smith ought to be in PUF’s Top the fi rst Public Utilities Fortnightly was you ask David what’s his proudest 40 Innovators. published. Young’s college roommate, professional achievement, he’ll cite his Did they reset how we thought Cliff ord Spurr, was made its fi rst editor- leadership role in the response to the about regulation and policy? Did they in-chief, my fi rst predecessor. devastation of Hurricane Sandy at the make you want to hear them out? Did Soon after, Young led both the request of President Barack Obama and they change your mind? electricity and telecommunications EEI president Tom Kuhn. Did they reshape our industry’s industries as chairman of GE and of the Th e Public Utilities Fortnightly team future? Radio Corporation of America, RCA. honors David in a second way. We’re Were they like Owen Young? Were He later, at the request of the president starting a new annual list, PUF’s Top they like David Owens? PUF 6 PUBLIC UTILITIES FORTNIGHTLY JUNE 2017 1706 From the Editor-r3.indd 6 5/20/17 12:25 PM DESIGNS ON THE FUTURE Building tomorrow’s transmission grid datcllc.c o m Well-designed transmission projects give utilities flexibility as they determine which energy resources can help meet energy demand for decades to come.