2009 Indiana CEO Survey

Niel C. Ellerbrook – Panel Member at the July 9 CEO Breakfast and Discussion
Chairman and CEO, Vectren Corporation

I very much enjoyed participating on the CEO Survey panel which discussed the survey results on the state of our Indiana business climate.  What I found particularly interesting from the survey overall was that results didn’t significantly differ from the prior year.  I expected to see greater variation, given the fact that we have been in the midst of the most significant recession since the Great Depression for the better part of a year.  I am anxious to see what the survey results show next year although by the time next year rolls around we will hopefully be emerging from the recession.

I also found it beneficial to talk a little bit about the possibility for climate control (cap and trade) legislation and its potential impact on Indiana.  As everyone knows, Indiana is very heavily coal dependent for electric generation with approximately 95 percent of total generation being supported by coal.  As a result of the extremely high use of coal, we do produce and emit substantial quantities of CO².  CO² is a significant greenhouse gas and likely the most significant manmade contributor to global warming.  The stakes are high for the potential implications of sustained higher temperatures and one only has to look at Venus in our solar system to get a sense of the implications of rising CO².  The atmosphere of Venus is 96 percent CO² and the atmospheric temperature is hot enough to melt lead!  So I don’t argue the need to do something to control CO² but the potential economic impact on Indiana residents from imposing controls will be very significant.  I think all of us need to send the message to our congressional representatives that we need free emission allowances for a sufficient period of time to allow technology to develop that will permit the targeted reduction in CO² emissions to be achieved.

As an example, carbon capture and sequestration has promise but it is not commercially achievable yet.  We need to provide time for these technologies to develop so that customers are not unnecessarily burdened with costs that they cannot afford to pay.  We also don’t want to see more Indiana jobs lost because our industries are overburdened with energy costs and uncompetitive as a result.

In closing, the panel was a lot of fun for me, but if I get another chance to participate, I intend to follow my friend Bill Corley’s casual dress code.