Business Roundtable CEOs Provide Blueprint for U.S. Energy Future.

Report Offers Broad Array of Solutions to Today's Energy Challenges

WASHINGTON -- Business Roundtable, an association of 160 chief executive officers of leading U.S. companies, today unveiled a wide-ranging energy plan calling for a more diversified and domestic-based energy supply mix, increased energy efficiency and greater investment in new energy technologies.

The recommendations, available in the plan entitled "More Diverse, More Domestic, More Efficient: A Vision for America's Energy Future," were developed through a consensus-driven process led by Business Roundtable's CEO members representing multiple sectors of the economy, and call for a mix of sound government policies, technological innovation, and proactive, voluntary efforts.

"With this blueprint, America's CEOs are speaking with one voice and calling for new approaches to meet our energy challenges," said Michael G. Morris, Chairman of the Roundtable's Energy Task Force and chairman, president and chief executive officer of American Electric Power. "Our plan will help ensure our nation's energy security by making our energy system more domestic, more diverse and more efficient. Our plan recognizes that we cannot afford to ignore any pathway that will contribute to stable, clean and affordable energy supplies."

Morris added, "This includes ethanol and other bio-fuels, nuclear power, greater access to conventional domestic oil and natural gas reserves, coal-to-liquids, coal gasification, and energy efficiency."

Among the recommendations in the Roundtable energy security blueprint are those calling for:

* Expanded use of bio-fuels, starting with 10% ethanol in gasoline as quickly as possible and then scaling-up advanced bio-fuels such as biobutanol and cellulosic ethanol as warranted by technology advances in the vehicles and fuels sectors;

* Developing and deploying energy efficient vehicle technologies to the maximum extent feasible;

* Reducing energy intensity outside the transportation sector by at least 25 percent above the anticipated business-as-usual rate of improvement, which would mean an overall reduction in energy intensity of 40 percent by 2025 (energy intensity is energy consumed per unit of economic output);

* Expanded access to oil and natural gas supplies in the Rocky Mountains, along the Atlantic and Pacific Coasts and the Eastern Gulf of Mexico regions, and in Alaska;

* Maintaining a viable and growing nuclear power sector; and

* Increased use of coal-to-liquids and coal gasification processes to produce transportation fuels, and syngas for electricity production use in manufacturing feedstock.

The report was developed in response to ongoing energy-related concerns of Business Roundtable member CEOs, as expressed in Roundtable member surveys. Business Roundtable CEOs have ranked energy costs as one of the most pressing and difficult challenges affecting their business and the overall U.S. economy, second only to health care costs.

"The production, distribution and overall cost of energy are among the most difficult challenges facing today's business environment," concluded Morris. "And, we believe the business community has a special responsibility to provide leadership on this issue. Our recommendations provide an aggressive-yet-balanced approach."

For more on today's announcement or to download the energy plan, go to www.businessroundtable.org.

Business Roundtable (www.businessroundtable.org) is an association of chief executive officers of leading U.S. companies with $4.5 trillion in annual revenues and more than 10 million employees. Member companies comprise nearly a third of the total value of the U.S. stock markets and represent over 40 percent of all corporate income taxes paid. Collectively, they returned $112 billion in dividends to shareholders and the economy in 2005.

Roundtable companies give more than $7 billion a year in combined charitable contributions, representing nearly 60 percent of total corporate giving. They are technology innovation leaders, with $90 billion in annual research and development spending - nearly half of the total private R&D spending in the U.S.

More Diverse, More Domestic, More Efficient: A Vision for America's Energy Future

"The members of Business Roundtable believe we must have national goals for increasing conservation and efficiency. We must expand access to energy resources while also developing a diverse array of energy sources. And, all of this must be grounded in a realistic approach to implementation. Together, these lead to one goal - energy security for America."

- Michael G. Morris, Chairman, President and CEO, American Electric Power, Inc.

MORE EFFICIENT

"Wise and efficient use of energy is one of the best strategies for enhancing our energy security. While we must push ourselves to think bigger and achieve even more, we believe we must readily embrace what is already available. Energy efficiency strategies, using known technology in new and existing residential and commercial buildings can improve efficiency by up to 50 percent. Those efficiency technologies must be put into place."

- Michael H. Thaman, Chairman and CFO, Owens Corning, Inc.

MORE DOMESTIC

"While increased energy efficiency and renewable fuels will improve our nation's energy security, most experts predict that we will depend on oil and gas for the majority of our energy supply for decades to come. Creating a more stable energy future requires responsible access to untapped U.S. oil and natural gas reserves."

- David O'Reilly, Chairman and CEO, Chevron Corporation 

MORE DIVERSE

"While coal has long played a vital role in electricity generation, we believe we must expand its use to augment gasoline and natural gas supplies by coal-to-liquids process as well as coal gasification. Increasing our energy security depends on our willingness to diversify the ways through which we meet our energy needs."

- Steven Leer, Chairman and CEO, Arch Coal, Inc.

MORE EFFICIENT

"Any pathway that can enhance our energy security should be on the table and we should consider and explore all options. While continued innovation is crucial, we must also implement the break-through solutions already in existence - increasing the role of renewables, optimizing power grid efficiency and design, and putting efficiency upgrades in place in existing power plants can and should be achieved immediately."

- George Nolen, President and CEO, Siemens Corporation

Quote of Daniel Yergin, Chairman, Cambridge Energy Research Associates, Inc. (CERA) on review of the Business Roundtable's policy statement on energy:

"It is an impressive, coherent - and timely - document. The report deserves and should have a major and constructive impact."