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Akins discusses energy issues on CNBC’s ‘Squawk Box’ program

by on June 1, 2015
AEP CEO Nick Akins appeared on CNBC’s “Squawk Box” news program May 28.

[Nick Akins], AEP chairman, president and chief executive officer, appeared on CNBC’s “Squawk Box” pre-market morning news and talk program May 28 to discuss energy issues, including how natural gas prices impact customers and the company’s profits.

“Natural gas has a very big impact on our customers from a fuel-cost perspective,” said Akins. “Our fuel cost is a pass-through to customers, so whenever natural gas prices are lower, it’s a direct benefit to the economy and our customers, and really it’s a value to us as we go through our portfolio. We’re using less coal, more natural gas, more renewables and so forth, so it really balances out our portfolio.”

Akins noted that the shale gas revolution in the U.S. touched off the major transformation that utility companies — including AEP — have embarked upon over the last couple of years.

“In the past, before the shale gas activities, natural gas was running at $11 to $14 a million BTUs,” Akins noted, “but today, to get above $3 is a particular challenge. If you think about the conversion rate with natural gas units, they are much more efficient than other types of generation units, so it turns out to be a double positive for customers.”

 

From → News From AEP

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