Plug-In Hybrid Electric Vehicles Promise Major Energy, Economic And

For Immediate Release
For More Information:
Dan Riedinger, 202-508-5483

WASHINGTON (Wednesday, May 17, 2006) The U.S. electric power sector
is uniquely positioned to help wean the nation from its dependence on
foreign oil and at the same time ensure continuing air quality
improvement and a simple 120-volt outlet and backing from the federal
government are two of the ingredients necessary to make this happen,
the Edison Electric Institute said today.

"The U.S. electric power sector has successfully reduced power plant
emissions while meeting the growing demand for electricity, and we can
literally help fuel a similar transformation already underway in the
transportation sector," said Rick Tempchin, EEI director of retail
distribution policy. "Though challenges remain, plug-in hybrid
electric vehicles (PHEVs) offer tremendous potential for reducing our
dependence on oil and further reducing emissions. While the
electricity industry is working with automobile manufacturers to bring
plug-ins to market, government research support and financial
incentives are critical to ensuring wide-scale commercialization," he
said.

Tempchin spoke as the House Science Subcommittee on Energy convened a
hearing on draft legislation to promote PHEV research and development.
EEI expressed support for testimony by the Electric Power Research
Institute (EPRI), an independent, non-profit research organization
that has spearheaded R&D efforts on electric transportation. EPRI
told lawmakers that, while plug-in technology currently was in the
prototype stage, the outlook for near-term commercial deployment was
excellent.

One of the main benefits of plug-in vehicles, Tempchin said, was the
prospect for transferring some of the transportation sector's heavy
reliance on petroleum to the power sector's diverse portfolio of fuels
used to generate electricity. Unlike automobiles and trucks, which
rely heavily on imported petroleum-based gasoline and diesel fuel,
electricity is produced from a variety of domestic fuels, including
coal, nuclear power, natural gas, hydroelectric power and other
sources of renewable energy. Fuel diversity has been a cornerstone of
efforts to maintain electric reliability and control costs in the
power sector, and plug-in hybrids can replicate some of these benefits
in the transportation sector.

"Commercialization of plug-in vehicles could significantly reduce
tailpipe emissions, save money at the gas pump, and help consumers
avoid price fluctuations associated with reliance on a single fuel to
power their cars," Tempchin said.

Before this can happen, EEI cautioned, Congress must ensure full
funding for programs to promote smaller-scale demonstrations of
plug-in vehicles and help address remaining technical challenges, such
as reducing the cost and extending the life of PHEV batteries.

Specifically, lawmakers should support the Department of Energy's $14
million request for its Vehicle Technologies Program and plug-in
hybrid research and development, as well as the department's Clean
Cities initiative to provide incentives and support for PHEVs and
other alternative-fuel vehicles. The Energy Policy Act of 2005 also
provides an incentive to utilities to include hybrid vehicles in their
fleets.

"Congress must provide funding for these programs before the Energy
Department can implement them," Tempchin said. "But with support from
the federal government, and continued collaboration between the
electricity and transportation sectors and state and local government,
consumers one day soon will be able to recharge their cars as easily
as they recharge their cell phones and portable music players. The
energy, economic and air quality gains could be dramatic, benefiting
individual consumers and the entire U.S. economy."

# # #

Edison Electric Institute (EEI) is the association of U. S.
shareholder-owned electric companies, international affiliates and
industry associates worldwide. Our U.S. members serve 97 percent of
the ultimate customers in the shareholder owned segment of the
industry, and 71 percent of all electric utility ultimate customers in
the nation. They generate about 60 percent of the electricity
produced in the United States.