CEO DATELINE — Two utilities to leave coal association ACCCE
CEO DATELINE — Two utilities to leave coal association ACCCE
- December 3, 2019 |
- WILLIAM EHART
Consider joining CEO Update. Membership gives full access to the latest intelligence on association management, career advancement, compensation trends and networking events, as well as hundreds of listings for senior-level association jobs.
Utility companies American Electric Power and Southern Co. will allow their memberships to lapse next year in the shrinking American Coalition for Clean Coal Electricity, according to E&E News.
The move leaves ACCCE, a coalition of coal industry interests including mining and railroads, with no utility members. With the industry in severe decline, ACCCE revenue has plunged from nearly $47 million in 2011 to $5 million in 2017. In addition to the loss of the utilities, ACCCE has had major members like Murray Energy—a private coal company whose CEO is close with President Donald Trump—declare bankruptcy, E&E reported.
AEP and Southern are the top coal burners in the United States, E&E reported, but have announced plans to shut down coal plants and reduce carbon dioxide emissions.
Both utilities previously have funded front groups that promoted climate denial, according to E&E, and also contributed to trade associations—such as the U.S. Chamber of Commerce and the National Association of Manufacturers—that have opposed many regulations aimed at reducing carbon emissions.
AEP's dues and payments to trade groups in 2018 included $600,000 to the Chamber and $36,000 to the NAM for lobbying and political purposes, according to a company disclosure. Southern gave nearly $338,000 to the Chamber and $30,000 to the NAM, E&E reported.
AEP paid ACCCE $10,000 for lobbying and political purposes last year, while Southern paid $50,000, down from $100,000 in 2015, E&E reported.
ACCCE CEO Michelle Bloodworth told E&E the organization appreciated AEP and Southern's years of membership and hoped to work with them again in the future. ACCCE remains committed to working with policymakers to maintain U.S. coal plants, she said.
"While the owners of the U.S. coal fleet are under pressure to continue to seek ways to lower their carbon emissions, we also know that coal is expected to remain an important source of electricity for decades to come," Bloodworth said in an email to E&E.
The utility companies' decisions come amid pressure from investors, consumers and activists for power companies to match the lobbying with expressed goals of reducing emissions.
In February, a coalition of investors with $1.8 trillion under management called on the United States' 20 largest utilities to publicly commit to net-zero emissions by 2050, E&E reported. As part of that campaign, the group pushed companies not only to detail how they plan to overhaul their operations but to outline their lobbying efforts.
MORE CEO DATELINE