Gerard Anderson on carbon pricing
From Policy Talks @ the Ford School: Gerry Anderson on energy policy and Michigan's economic recovery · · University of Michigan
“The reason that is favored by the industry versus a carbon fee is that carbon fees, especially where they might be set by Congress, don't necessarily correlate to a known carbon reduction unless you know where to set it in terms of price to get the result that you want. That's one thing. But there is something more fundamental and that's in regulated companies like mine. They come from the way we use electricity. We need to stop using coal plants. We are constantly managing customer rates and affordability. A carbon tax lays on top of these capital plans and increases could have. You kind of have to go with one or the other, either tax and leave companies manage to that or put in place something like a clean energy standard.”
On , Gerard Anderson, Former Chairman & Chief Executive Officer at DTE Energy, spoke about carbon pricing during Policy Talks @ the Ford School: Gerry Anderson on energy policy and Michigan's economic recovery on University of Michigan.
About Gerard Anderson
In an April 2021 appearance at the Ford School, former DTE Chairman and CEO Gerry Anderson discussed energy policy and Michigan's economic recovery from COVID-19. Anderson stated that the utility industry is "desirous of trying to establish what we call an ambitious, but technically grounded clean energy standard," and said the industry favors such a standard over a carbon fee because a fee "doesn't necessarily correlate to a known carbon reduction." He noted that DTE announced in early 2017 a plan to reduce carbon emissions 80% and retire its coal plants, and described the reaction as "overwhelmingly positive." Anderson also addressed the Texas power crisis, attributing high residential bills to a deregulated market where "marketers can pass through the provider spikes to homeowners." He distinguished between rates and bills, saying DTE has "relatively high rates and relatively low bills" due to lower electricity usage in Michigan. Anderson also reflected on the pandemic's impact, predicting that reduced business travel would be a "permanent change for the better in terms of lower energy use," while noting that home energy use had risen and was "likely to be permanent, too." He served as co-chair of the Michigan Economic Recovery Council, which was tasked with forming a reopening plan during the pandemic.