A Balancing Act

We must act today to ensure an affordable, reliable and cleaner supply of energy for our customers in the future. Between 2010 and 2012, we expect to invest between $14 billion and $15 billion to modernize our aging regulated generation, transmission and distribution system, maintain our existing facilities, and sustain earnings and cash flow from our commercial businesses. As we work to achieve constructive regulatory recovery of our investments and earn fair returns on capital, we will strive to smooth out and reduce the impact of future rate increases on our customers.

Our strategies are clear:

  • Modernize our facilities to repower the regions we serve, improve reliability, create new jobs and reduce our environmental impact.
  • Execute on a new regulatory model for energy efficiency to help our customers save money and make the communities we serve more energy efficient.
  • Keep our commercial businesses profitable and focused on earning solid economic returns.
  • Engage on the front lines of the climate change, energy and environmental debates to help protect the interests of our stakeholders, especially our customers and investors.

The table on pages 2 and 3 of this report summarizes our strategic initiatives, which I discuss in greater detail below. Some of these are early-stage initiatives designed to create options, such as our ongoing efforts to expand energy efficiency. Some remain central to our strategy regardless of what happens, such as modernizing our generation fleet and our grid, and expanding our renewable energy portfolio.

Finally, other initiatives, such as our proposed nuclear plant projects, have a longer time frame. To succeed in these efforts, we must be alert to changes that may require course adjustments.