EEI's next leader draws praise but stokes worry about climate stance

Dan Brouillette, the incoming head of the Edison Electric Institute, has drawn praise from industry heavyweights who say his federal policy experience and willingness to consider different perspectives will help bridge gaps between the group's diverse membership.

Critics worry, however, that his work as US Secretary of Energy under former President Donald Trump could foreshadow a retreat from helping to decarbonize the power sector.

On Aug. 16, the Edison Electric Institute (EEI) announced that Brouillette would be the group's president and CEO-elect, effective Oct. 1. Brouillette will officially helm the organization on Jan. 1, 2024, succeeding outgoing CEO Tom Kuhn.

EEI is an association that represents US investor-owned electric companies, and its members serve almost 250 million Americans. The group backed efforts to enact federal climate policies in recent years, including the Inflation Reduction Act of 2022, which contained an estimated $369 billion in tax incentives and funding for clean energy and climate solutions.

Many EEI members own a substantial amount of fossil fuel-based generation, but the group's board chair, Pedro Pizarro, is president and CEO of Edison International, which has a goal to achieve net-zero greenhouse gas emissions across its operations by 2045. EEI Vice Chair Maria Pope is president and CEO of Portland General Electric Co., which is aiming for net-zero emissions for its company operations and power sales by 2040.

"Dan's strong policy background and proven track record of collaboration across political lines will be key to EEI's success and that of our member companies as we continue our work to get the energy we provide as clean as we can as fast as we can," Pizarro said in a news release announcing Brouillette's selection.

In the same release, Brouillette said he has "long admired the determination of EEI and its member companies to deliver clean, reliable, and resilient energy in the most affordable and inclusive manner possible."

But one prominent environmental group said choosing Brouillette is evidence that utilities should leave EEI if they want "true climate leadership."

"With Brouillette at the helm, it's time for utilities who claim to be serious about providing affordable, reliable clean energy to leave this out-of-touch group of lobbyists once and for all," Sierra Club Executive Director Ben Jealous said in an Aug. 16 statement.

EEI did not make Brouillette available for an interview about his selection to lead the group.

'He's got all the skill sets'

EEI's board conducted a nearly yearlong succession-planning process, Pizarro said in an email to S&P Global Commodity Insights. The search committee considered a diverse slate of candidates before presenting Brouillette to EEI's executive committee and full board of directors, which both "unanimously supported his selection," Pizarro said.

Mark Menezes, president and CEO of the US Energy Association, served as deputy energy secretary under Brouillette, and the two former Department of Energy officials previously worked together on Capitol Hill as staff of the House Energy and Commerce Committee.

"Dan is knowledgeable about the energy systems, the issues facing the energy sector on a large scale," Menezes said in an interview. "Dan understands both Congress and the executive branch. ... So he's got all the skill sets, and he's got a broad knowledge base, and I'm really excited about the choice."

Along with his industry knowledge and experience, including recently serving as president of Sempra's infrastructure division, Brouillette brings the ability to resolve conflicts and gather a range of perspectives before making decisions, according to Menezes.

Brouillette will recognize the various interests at EEI and implement processes so members can be "as united as they can be to help inform policy," Menezes said.

Those views are shared by at least one Democratic former energy regulator.

"I think Dan will be a good fit for EEI and the investor-owned utilities," said Richard Glick, who chaired the Federal Energy Regulatory Commission from 2021 to early 2023 under President Joe Biden. "He is extremely knowledgeable about the key energy issues of the day and is well respected on both sides of the aisle."

Utilities are working at varying speeds to cut emissions, and Brouillette "has the talent to bridge the gap between utilities that might have different views about how the energy transition should take shape," Glick said.

During his confirmation hearing for the DOE secretary position in November 2019, Brouillette said he supported an all-of-the-above energy strategy that includes reliance on both fossil fuel and renewable and other clean resources. But he also cautioned that increased integration of renewable power onto the grid is "very, very difficult," and he urged the preservation of "baseload" plants, including coal-fired facilities, until battery storage capacity and duration grow.

Under Brouillette, the DOE developed a model for assessing North American grid resilience and identifying critical energy infrastructure, reflecting a focus on reliability that could influence his work at EEI.

Critics fear 'regressive' agenda

Some industry stakeholders worry Brouillette could deprioritize EEI's climate efforts.

Brouillette was deputy DOE secretary in 2017 when then-Energy Secretary Rick Perry pitched a plan to keep financially struggling baseload power plants online. The proposed rule, which FERC later rejected, would have provided full cost recovery and a return on investment to generators in wholesale power markets that stockpile 90 days' worth of fuel and are not subject to cost-based rate recovery.

The proposal was part of the Trump administration's efforts to preserve the US coal-fired generation fleet, which was struggling to compete against growing natural gas-fired and renewable capacity.

Under Perry, the DOE also explored a plan to make grid operators buy power or capacity from designated coal-fired and nuclear plants for two years to ensure grid resilience and bolster national security.

Although Brouillette was not yet leading the agency, he was "directly involved" in those plans, recounted Menezes, who served as DOE undersecretary at the time.

Brouillette's past comments about climate change have also worried environmental advocates. Reporters broached the topic after Brouillette finished a tour of a petrochemical facility in western Pennsylvania in September 2020, when he was head of the DOE. His answer did not endorse the climate science that indicates human-caused greenhouse gas emissions are rapidly accelerating global warming.

"We have a lot to learn about what causes changes in the climate, and we're not there yet," Brouillette said, according to StateImpact Pennsylvania and the Beaver County (Pa.) Times.

"The bottom line is we live here, so we must have some impact," Brouillette added. "The question is, what is the exact impact that we're having? And that's the question that has not been resolved."

Three clean energy trade groups — the American Council on Renewable Energy, the American Clean Power Association and Advanced Energy United — declined to comment on Brouillette's selection to lead EEI. But some prominent environmental groups voiced consternation.

Brouillette "has just the résumé to help advance EEI's regressive, dirty agenda," Sierra Club's Jealous said.

Sierra Club has decried EEI's stance on the US Environmental Protection Agency's power plant carbon rules proposed in May. In comments filed with EPA, EEI said the proposal would require emissions control technologies that have not been adequately demonstrated. The group also said EPA failed to account for the role existing gas-fired units will play as intermittent solar and wind resources produce a growing share of electricity.

Evergreen Action, a group advocating an emissions-free power sector, said choosing Brouillette "is a clear signal of EEI's hard-right pivot" and "confirmation of a concerning direction that the organization has been heading in recent months."

"Bringing on Trump's former Energy Secretary to lead their work absolutely indicates a long-term shift in EEI's strategy," Evergreen's communications director, Holly Burke, said in an email. "You don't bring on a master clean energy obstructionist with a history of climate denial if you're actually serious about leading on climate."

Pizarro, however, said choosing Brouillette does not signal that climate change is a lower priority for EEI.

"Under Dan's leadership, EEI will continue to advocate for policy development in critical areas like clean energy and energy security," Pizarro said in his email. "The board and I look forward to working with Dan and the EEI team to further facilitate EEI's push for a cleaner, more resilient, affordable and socially responsive US electric industry."

Menezes said Brouillette "wouldn't promote one energy source over another necessarily."

"He doesn't come in driven by one particular interest or bias," Menezes said. "He's going to be very open."

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