Introduction

Despite calls for fossil fuel expansion, the US risks falling short of its nationally determined contribution to the Paris Agreement. Utilities carry significant clout in policymaking processes and therefore have a critical role to play in advancing legislation and regulation needed to mitigate climate change.

Analysis of the US power sector

Edison International, Exelon Corporation, and Public Service Enterprise Company (PSEG) are the top three leading utilities for climate policy engagement and Southern Company and CenterPoint Energy are the laggards of the sector. Overall, while four of the 25 utilities are engaging positively with climate policy, nearly half of the 25 analysed companies continue to demonstrate negative engagement that is misaligned with delivering the goals of the Paris Agreement.

Policy engagement strategies

U.S. utilities employ a range of tactics, from public messaging and legislative testimony to astroturfing and corruption, to achieve policy aims at every level and body of government. For example, most of the 25 utilities, including sector leaders, use a mixture of public messaging, testimony, and coalition-building to promote fossil gas. Additionally, several depended on direct engagement with policymakers to oppose climate provisions in the US Build Back Better Act. Others have used more extreme measures like astroturfing and bribery to challenge climate policy at the state level.

Utility association influence

This report found that the top five trade associations opposed to climate policy outcomes had an average operational budget of over $250m per year. The report also considered the influence of these trade associations on the U.S. power sector. EEI is noted for its historical opposition to climate policy. Governors for Planning and Resources Committees (GOPR) has opposed the Environmental Protection Agency on multiple subjects.

Comparison of US and European Union’s power sector climate policy engagement

The European Union (EU) power sector performs significantly better than the US power sector. European utilities form many of the highest-scoring entities in InfluenceMap’s system. The top-scoring EU utilities are similarly active on climate policy, with Engagement Intensity scores that reflect strategic levels of policy engagement. InfluenceMap’s benchmarks, based on the IPCC’s 2018 Special Report on 1.5C, finds that most utilities follow a strong pattern of advocating for the long-term role of unabated fossil gas at all levels of government, and, in some cases, opposing governmental interventions to retire coal in the energy mix.

Conclusions

While four of the 25 utilities are engaging positively with climate policy, nearly half of the 25 analysed companies continue to demonstrate negative engagement that is misaligned with delivering the goals of the Paris Agreement. The report outlines the methods US IOUs use to engage positively and negatively on climate policy, including opposition at both the federal and subnational levels. Lastly, the report outlines the differences in the engagement of US and EU utilities with climate policy, indicating that the EU power sector performs significantly better than the US power sector. The report’s recommendations include sector-level and company-level governance changes, such as full disclosure of political contributions, lobbying activity, and links to trade associations.