American Public Power Association Update Susan N. Kelly President and CEO American Public Power Association Joint Action Workshop January 12, 2017 Naples, FL
What s New in 2017? New Congress (still Republican majority in both chambers Democratic hopes to flip the Senate were dashed) New President with very different agenda and ideas; House, Senate and President are all Rs, but there are many different types/philosophies New Services on Cyber/Physical Security New Look for the Association! New Association staffers
The 115 th Congress New Congress began on January 3 Rep. Paul Ryan (R-WI) still Speaker; Nancy Pelosi (D-CA) still Minority Leader Senator Mitch McConnell (R-KY) still Majority Leader; Senator Chuck Schumer (D-NY) is the new Minority Leader (replacing Harry Reid) Senate breakdown 52 Republicans and 48 Democrats (not filibuster proof.) House breakdown 241 Republicans and 194 Democrats
Key Public Power House Committee Leadership--I Energy & Commerce Committee Rep. Greg Walden (R-OR) is the new full committee chair; Rep. Frank Pallone (D-NJ) remains full committee ranking member Energy Subcommittee Rep. Fred Upton (R-MI) is new chair (lost Clean Air Act jurisdiction) Environment Subcommittee Rep. John Shimkus is new chair (got CAA issues) Communications & Technology Subcommittee Rep. Marsha Blackburn (R-TN) is the new chair; Rep. Anna Eshoo (D-CA) likely to remain ranking member jurisdiction over pole attachment issues/spectrum
Key Public Power House Committee Leadership--II Ways & Means Committee Rep. Kevin Brady (R- TX) remains chair; Rep. Richie Neal (D-MA) is new ranking member (Brady s views on tax-exempt financing are unclear; Neal has been an ally) Natural Resources Committee Rep. Bob Bishop (R-UT) remains chair and Rep. Raul Grijalva (D-AZ) remains ranking member; this committee is important especially to Western members, PMA customers (also Endangered Species Act, vegetation management, BLM)
Key Public Power Senate Committee Leadership Energy & Natural Resources Committee Senator Lisa Murkowski (R-AK) remains chair; Senator Maria Cantwell (D-WA) remains ranking member (both supporters of public power) Finance Committee Senator Orrin Hatch (R-UT) remains chair; Senator Ron Wyden (D-OR) remains ranking member (neither are supportive on taxexempt financing) Environment & Public Works Committee Senator John Barrasso (R-WY) is new chair; Senator Tom Carper (D-DE) is the new ranking member; Carper has been helpful in past and they get along well
Early Congressional Agenda (Besides Health Care!) Regulatory reform first issue up; House already passed the Midnight Rules Act ; regulatory reform bill up next; prospects not bright in Senate (need 60 votes) Our CFTC fix likely to come to the House floor this week as part of H.R. 238, the Commodity End-User Relief Act of 2017 Expect tax reform push in first half of 2017; we are concerned re removal of the tax-exempt status of municipal bonds; would increase borrowing costs for public power utilities and more broadly, state and local governments
Tax Reform, Continued Trump said in Dec. meeting with mayors he supports tax-exempt status of municipal bonds; Monday night there was a private meeting between Trump advisors and Speaker Ryan s team re House GOP s tax proposal Protecting tax-exempt financing is public power s number one legislative priority in 2017 Please sign onto to broad coalition letter distributed via GRWG listserv on January 10 Will ask you to lobby your Reps. to sign onto letter to House leadership, Ways & Means Committee expressing support for not taxing or capping the interest deduction for municipal bonds
Trump Transition EPA Administrator Nominee: Scott Pruitt, Oklahoma AG, well known to be skeptical of EPA DOE Secretary Nominee: Rick Perry, former Governor of TX; reputation for all of the above energy policy, including CREZ transmission lines FERC Nominees: Nothing official yet many names swirling around; understand they want to emphasize basic infrastructure (transmission lines, natural gas pipelines), less concern about picking generation types, markets DHS Secretary Nominee: Gen. John Kelly (ret.), very strong candidate, bipartisan support Interior Secretary Nominee: Rep. Ryan Zinke (R.- MT) (former Navy Seal, state legislator)
DOE-Association Cooperative Agreement $7.5 million over three years (until 2019) authorized; NRECA has parallel agreement (we are coordinating with them) Goal: develop a cyber security culture at public power utilities (especially smaller distribution utilities); help them understand and address their cyber security risks Tools: Technical and policy guidance, pilot deployment of new technologies and improvement of information sharing Year 1 Tasks: Cyber security risk assessments Onsite cyber vulnerability assessments Pilot existing and emerging security technologies Improve communications re cyber threats
Current Cyber Initiatives Baseline Assessment Survey (to understand how cyber security is now being addressed at public power utilities); need your help to complete Cyber security training (can bring to your region) Public Power Cyber Maturity Model (coming soon) Onsite Vulnerability Assessments (coming soon) Pilot Cyber security technologies Request that JAAs consider cyber security as a service to their members reach out to Nathan Mitchell (MPUA s N-sentinel deployment may be a possible model) Improving Information Sharing E-ISAC as the national focal point Burlington VT s example of doing the right thing
Association-Sponsored Cyber Attack Exercises Past: CAPP Flex I National Conference 2015 (Physical) CAPP Flex II National Conference 2016 (Cyber) Planned: Joint Action Agency Workshop: January 13, 2017 CEO Roundtable: February 14, 2017 E&O Conference: May 10, 2017 National Conference: June 17, 2017 Can do exercises for your members at Joint Action Agency Meetings (sign up now again, talk to Nathan Mitchell)
APPA Rebranding: The Old Look..
But We Are Not Alone..
Public Power? Huh? Our research showed that only 1 in 5 CUSTOMERS under 55 KNOWS that their utility is community-owned and not-for-profit.
And So, Our New Look Unveiled on Monday of this week Deemphasizes use of the acronym APPA (will be tough for our staff it is so handy it will be a journey for us all!) Emphasizes public power and our members ties to their communities
The Elevator Speech About the Association The American Public Power Association is the voice of not-forprofit, community-owned utilities that power 2,000 towns and cities nationwide. We represent public power before the federal government to protect the interests of the more than 49 million customers that public power utilities serve, and the 93,000 people they employ. Our association advocates and advises on electricity policy, technology, trends, training, and operations. Our members strengthen their communities by providing superior service, engaging citizens, and instilling pride in community-owned power.
The Elevator Speech About the Membership Community-owned, not-for-profit public power utilities power homes and businesses in 2,000 communities from small towns to large cities. They safely provide reliable, low-cost electricity to more than 49 million Americans, while protecting the environment. These utilities generate or buy electricity from diverse sources. They employ 93,000 people and earn $58 billion in revenue each year. Public power supports local commerce and jobs and invests back into the community.
What Is Next in 2017 for Raising Awareness Will be developing utility-ready/customizable communications tool box for utility members (especially smaller members who may not have this capability in house); templates, social media content, etc. Will be working with around 8-10 representative smaller public power utilities over the year to help them with public relations/media efforts; these pilots will help us figure out member needs Will be revamping/improving the Association s website (our virtual front door ) to improve content, relevance, searchability, etc.
New/Promoted Advocacy Staffers Laura Marshall Schepis, new Senior VP of Advocacy and Communications (Joe Nipper retired 12/31/16) Delia Patterson, promoted to Vice President of Regulatory Affairs and General Counsel (Allen Mosher departed 11/16) Desmarie Waterhouse promoted in 2016 to Vice President of Government Relations and Counsel Paul Zummo promoted to Director of Policy Research and Analysis Recruiting for Manager of Regulatory Policy and Business Programs (11/29/2016) and Grassroots & PAC Manager (8/14/2016)
And So, On to 2017 New Congress, New Administration, New Services, New Look, New/Promoted Staff, but Same Purpose and Vision Purpose: APPA partners with its members to promote public power, helping communityowned utilities deliver superior services through joint advocacy, education and collaboration. Vision: Shaping the future of public power to drive a new era of community-owned electric service.