DAVID:
WELL, GOVERNMENT IS PLANNING
SUBSIDIES FOR THE COAL INDUSTRY,
SO HOW WILL THAT AFFECT
PETROLEUM INSTITUTE JOINING US
NOW.
WELL, TODD, FIRST OF ALL, RICK
PERRY'S OUR ENERGY GUY.
FORMER GOVERNOR OF TEXAS.
HE KNOWS ENERGY BETTER THAN ANY
HOW TO STILL RATE PRODUCTION OF
ENERGY -- STIMULATE PRODUCTION
OF ENERGY, FOSSIL FUELS IN
AMERICA.
DID THAT CROSS THE LINE, THOUGH,
INTO SUBSIDIES?
>> WELL, DAVID, AS YOU LOOK AT
THE PROPOSAL THAT IS BEING PUT
FORWARD BY THE DEPARTMENT OF
ENERGY, THEY'RE REALLY ASKING
AND NUCLEAR, AND IT'S REALLY
PUTTING IN JEOPARDY SOME OF THE
SUCCESSES THAT HAVE BEEN
DISCOVERED AND REALLY PUT INTO
PLACE BY NATURAL GAS AS A RESULT
OF THE LOW COST THAT EXISTS AND
HOW WE ARE ABLE TO TO USE THAT
TO LOWER CONSUMERS' PRICES.
REALLY THAT'S JEOPARDIZING THE
LOW COST CUSTOMERS ARE PAYING --
DAVID: OKAY.
FULL DISCLOSURE, COAL WOULD BE
YOUR COMPETITOR.
ALL OF THE ABOVE ORGANIZATION.
BY THAT WE MEAN WE UNDERSTAND
THAT ALL SOURCES OF FUEL ARE
GOING TO BE PART OF THE AMERICAN
PORTFOLIO GOING FORWARD AND, IN
THAN IT'S EVER BEEN.
AND WE THINK THAT'S A GOOD
THING, BECAUSE IT'S PROVIDED
RESILIENT AND RELIABLE FUEL AND
ENERGY TO CUSTOMERS ACROSS THE
COUNTRY.
DAVID: NOW, NORA BROWNWELL WHO
WE'VE HAD ON BEFORE, SHE'S A
FORMER G.W. BUSH APPOINTEE,
FORMER ENERGY OFFICIAL, SHE DOES
CALL WHAT'S HAPPENING NOW FOR
COAL COMPANIES TO BE CASH FOR
CRONIES; THAT IS, THESE ARE COAL
COMPANIES, SOME OF WHOM, AGAIN,
HAVE BEEN HERE AS GUESTS ON FOX
BUSINESS, BUT WHO HAVE BEEN VERY
SUPPORTIVE OF DONALD TRUMP, AND
THIS IS PAYBACK.
WOULD YOU GO THAT FAR?
>> I THINK REALLY WE WOULD
TELL IN AMERICA.
IT'S REDUCED EMISSIONS AND
CARBON EMISSIONS ARE DOWN TO
30-YEAR LOWS.
WE HAVE LOWER PRICES FOR
CONSUMERS, AND WE'VE SEEN THE
ENTIRE SUPPLY CHAIN BENEFIT FROM
THAT'S A SUCCESS STORY ACROSS
THE COUNTRY.
DAVID: NOW, "THE WASHINGTON
POST" HAD A BIG PIECE ON ALL
THIS, AND I WAS TRYING TO FIND
OUT EXACTLY HOW COAL COMPANIES
THIS NEW PROVISION THAT IF A
COAL COMPANY HAS 90-DAY
DEPARTMENT.
CAN YOU ELABORATE ON THAT?
>> SURE, DAVID.
IT'S PART OF THE PROPOSED
RULEMAKING THAT HAS BEEN PUT
FORWARD BY THE DEPARTMENT OF
ENERGY AND HANDED TO THE FEDERAL
ENERGY REGULATORY COMMISSION, OR
FERC.
AND THEY'VE BEEN EVALUATING THAT
PROPOSAL NOW AND ARE EXPECTED TO
ACT BY MID JANUARY TO COME UP
WITH A SOLUTION.
BUT IT DOES REWARD GENERATING
SITES THAT HAVE 90 DAYS OF
ON-SITE FUEL STORAGE WHICH WOULD
BE COAL AND NUCLEAR UNITS BASED
ON THE SIZE OF THE COAL PILE
THAT WOULD EXIST OR THE FACT
THAT THEY HAVE FUEL RODS ON SITE
AND WOULD BE A DIRECT DETRIMENT
TO NATURAL GAS BECAUSE WE
OPERATE IN MORE OF A JUST IN
TIME FUEL DELIVERLY MECHANISM.
HAPPENED TO COAL OVER THE PAST
SEVEN, EIGHT YEARS,
SPECIFICALLY, OF COURSE, DURING
THE OBAMA ADMINISTRATION, THEY
WERE BEATEN DOWN LIKE BANDITS.
I MEAN, TIME AND TIME AND TIME
AGAIN WE SAW THE MARKET CAP OF
MOST COAL COMPANIES GO DOWN
SOMETIMES 90% OR MORE.
DON'T YOU FEEL THAT THEY SHOULD
GET SOME KIND OF LEG UP WHEN YOU
SEE WHAT HAS HAPPENDT TO THEM IN
TERMS OF OVERREGULATION?
>> DAVID, IN THE PING, CUSTOMERS
PUT IN PLACE THAT WERE NOT
BENEFICIAL TO THE COAL INDUSTRY,
WHAT'S REALLY DRIVING MANY OF
THE INVESTMENT DECISIONS AND THE
CHANGE IN FUEL GENERATION IS A
RESULT OF THE LOW COST AND LARGE
SUPPLY OF NATURAL GAS THAT'S
AVAILABLE.
AND IT'S NOT MERELY A FUNCTION
OF OVERREGULATION, IT'S ACTUALLY
LOWER COSTS AND BETTER
GAS IS THE SINGLE LARGEST SOURCE
OF GENERATING CAPACITY IN THE
COUNTRY.
DAVID: RIGHT.
BUT AREN'T THERE SOME KINDS OF
REGULATORY RELIEF TO THE COAL
COMPANIES, SPECIFICALLY ALLOWING
THEM MORE FREEDOM TO EXPORT TO
OTHER COUNTRIES, ISN'T THAT A
GOOD THING NOT ONLY FOR THOSE
COUNTRIES TO WHOM WE'RE
EXPORTING, BUT ALSO FOR OUR
COUNTRY'S ECONOMY?
>> CERTAINLY.
WE WON'T DISAGREE WITH IF A COAL
COMPANY WANTS TO EXPORT THEIR
PRODUCT, THAT'S A BUSINESS
DECISION THEY SHOULD MAKE AND,
GREAT USE OF AMERICA'S
WANT SUBSIDIES WHERE THEY DON'T
IF IT'S JUST A MATTER OF
DEREGULATION OF WHAT THEç COAL
COMPANIES HAVE HAD TO DEAL WITH,
THE OVERREGULATION THEY'VE BEEN
SUMMITED TO, YOU'RE NOT OPPOSED
TO THAT.
>> I THINK WHAT'S IMPORTANT IS
THAT WE KEEP IN MIND THE
PERSPECTIVE OF CONSUMER BENEFITS
AND LOW COST.
AND THE SYSTEM IS RELIABLE AS
IT'S EVER BEEN WITH, AND ENERGY
IS AS LOW COST AS IT'S EVER
BEEN, AND THAT'S A DIRECT RESULT
OF NATURAL GAS.
DAVID: WELL, IT'S THE DIRECT
RESULT OF AN ADMINISTRATION
THAT'S ALSO A LOT MORE FAVORABLE