Edison Electric Institute (EEI)
The Edison Electric Institute (EEI) is a prominent organization that represents the interests of the shareholder-owned electric power industry. Established as a response to the need for a cohesive regulatory policy regarding service territories, EEI aims to promote economic efficiency and prevent duplication of services among electric utilities. The institute evolved from the National Electric Light Association and expanded its influence by integrating other associations, such as the Electric Energy Association and the National Association of Electric Companies.
EEI serves as a vital resource for its members, which include many electric utilities owned by millions of small investors. It facilitates wholesale electricity marketing among its members and various other entities, including municipal systems and rural electric cooperatives. In addition to its advocacy work, EEI plays an educational role, informing the public and engaging with government agencies on issues of significance to the industry. The organization also conducts surveys and studies to provide its members with insights into operational practices, regulatory environments, and market opportunities, thereby fostering a collaborative atmosphere for electric utility professionals.
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Edison Electric Institute (EEI)
- DATE: Established 1933
The Edison Electric Institute is an association of investor-owned electric utility companies operating all over the world. In 2022, member companies generated roughly 34.7 percent of the power produced in the United States.
Background
The Edison Electric Institute was formed when public investors realized that their companies needed a collective regulatory policy regarding assignment of service territories (franchises) to eliminate the duplication of service and equipment and become more economically efficient. The Edison Electric Institute assumed the promotional responsibilities of the National Electric Light Association, the forerunner to the Edison Electric Institute. The institute continued to grow by absorbing the Electric Energy Association in 1975 and the National Association of Electric Companies in 1978.
In 2024, the Edison Electric Institute announced that it intended to sue the administration of President Joe Biden over government regulations. These regulations were in regard to emissions from fossil fuel power plants. The institute, along with the other companies involved in the lawsuit, alleged that the EPA's implementation timelines for greenhouse gas reductions were unachievable.
Impact on Resource Use
The Edison Electric Institute represents the interests of the shareholder-owned electric power industry. Millions of small investors collectively own most electric utilities, either by the direct purchase of stock or indirectly through life insurance policies, retirement funds, and mutual funds. Electric utilities that are Edison Electric Institute members market some of their electricity at wholesale rates to other electricity-producing entities. These other entities include more than two thousand municipality-owned systems, some federally owned hydroelectric projects, and many of the one thousand rural electric cooperatives.
The Edison Electric Institute also functions as an information center by educating the general public, communicating with government agencies on topics of public interest, and serving as a forum for the interchange of ideas and information with its member companies and their personnel. The Edison Electric Institute conducts numerous surveys and studies that provide information to its members on utility operations, regulations, sales, revenues, environmental practices, and marketing opportunities.
Bibliography
"Capacity and Generation." EEI, 2022, www.eei.org/en/resources-and-media/industry-data#. Accessed 23 Dec. 2024.
Chemnick, Jean, and Storrow, Benjamin. "Edison Electric Institute to Sue Biden Admin Over Climate Rule." E&E News, 20 May 2024, www.eenews.net/articles/edison-electric-institute-to-sue-biden-admin-over-climate-rule/. Accessed 23 Dec. 2024.
"EEI Joins Litigation for EPA's New Clean Air Act Section 111 Rules" EEI, 22 May 2024, www.eei.org/en/news/news/all/eei-joins-litigation-for-epa-clean-air-act-111-rules. Accessed 23 Dec. 2024.