Ted Craver: CEO of Edison International has some powerful ideas

Edison International CEO Ted Craver attends the Global Leaders Climate Change Summit in Los Angeles on Sept 15. Photos by chang Jun / China Daily

Head of the Fortune 500 electric utility holding company sees some high-voltage partnership possibilities in China

Ted Craver says it's possible that his company, Edison International, could one day literally have a high-powered relationship with China.

"They are very involved in high-voltage transmission, in fact, probably one of the leaders in the world in this regard," said Craver, the chairman and CEO of the public electric utility holding company based in Rosemead, California.

"There are some applications in the US, I think, that can be used for high-voltage transmission in China. This will be a very good area for China-US partnership - possibilities between our transmission application and what China is doing with their high voltage transmission."

China Daily interviewed Craver on Sept 16, when he delivered the keynote speech at the US-China Climate Leaders Summit in Los Angeles. Craver also participated in a CEO roundtable discussion in which business leaders from the world's two largest economies worked on tackling climate-change problems.

Craver discussed Edison's efforts in pursuing energy efficiency and clean energy in the US and elsewhere and called for industries in the two countries to play a more vital role in implementing their governments' climate objectives.

Craver showed considerable knowledge about Chinese culture, the Asian-American community in California, and China's power industry in general. Although Edison is not currently a player in the Chinese market, it will look to expand to China in the future, he said.

After rising to the top office at Edison International (the parent company of Southern California Edison) in 2008, Craver made an effort to reshape the company, which is ranked 226th on the 2015 Fortune 500 list. Edison has a market capitalization of nearly $21 billion, and its shares trade on the New York Stock Exchange.

The company has been in business more than 130 years, specializing in electricity delivery, energy services and technologies, including renewable energy.

In line with California code and regulations on clean and efficient energy, Edison is working with policymakers to help the government create practical public policy for California and the US, based on an understanding of costs and trade-offs.

Craver wants Edison to be an active partner with California, as the state pursues its ambitious climate goals.

He said that environmental objectives sometimes are seen as incompatible with economic growth, and that companies have to choose which one to emphasize.

"At Edison, we reject that premise as defeatist and short-sighted," he said. "We believe it's possible to meet both environmental objectives and have economic prosperity," Craver said at the climate summit, which was attended by 300 business leaders from China and the US.

An advocate for new and clean energy, Ted Craver believes that the trend of storing electricity for future use is a key to widespread adoption of renewable power such as solar and wind, which are not always producing power when needed.

For China, a country with soaring demand for electricity, power storage might be something on which industries from both countries can collaborate.

Craver agreed to a Q&A session with China Daily when he was at the climate summit.

Q: Can you talk a little about Edison International's businessand its connection with China?

A: Most of our involvement here in the (US) is providing electricity to customers in Southern California. We have other businesses as well, different clients, but the very strong emphasis for us is dealing with the very different types of customers in Southern California, one of the most diversified communities in the nation. The Asian Americans, the Chinese Americans for example, in particular are a very big part of our customer (base). In terms of our involvement with the Chinese mainland, business is mostly that we buy quite a bit of goods for building our electricity system, for building our electric grid, so we source products from China. We do not have any investment in China so far, but it's mostly a vendor kind of relationship with China.

Q: When you talk about sourcing and purchasing from China, is there any particulararea you want to specify?

A: Let me talk about one interesting electric transportation provider, BYD, the electric-vehicle maker. They are here in Los Angeles. We are in close talks with BYD regarding how to help them improve their business infrastructure and support them to enhance the electric transportation in Southern California.

Q: For BYD, specifically, what is Edison's role?

A: We see them as a partner; we both are interested in providing electric transportation in the United States, but certainly here in Southern California. We provide them infrastructure, the power for their electric vehicles. In order to reduce carbon and pollution in the US, we need good partnerships, like ours with BYD. We believe very, very strongly that electric transportation is and will be a critical business.

Q: How, in your opinion, can China and the US work together to solve the climate change problems?

A: Climate change transcends the borders of California. It's a challenge for the entire world. Also, air pollution travels from Asia to North America propelled by the prevailing jetstream. China faces an enormous challenge in reducing air pollution while continuing to grow its economy. But it can be done. We are working on doing it here in California. As this US-China Climate Leaders Summit demonstrates, out two nations can work together to lead the world to a cleaner future.

Q: What do you think about the US state visit of President Xi Jinping?

A: I think it's fantastic that our two countries can work together. We don't always agree, but the most important thing is we can work together to solve some of the most difficult major global issues for the better. I'm very pleased to see that happen.

Q: In the near future, will Edison International startoperations in China?

A: Possibly. Again, we are in the infrastructure business; we build huge amounts of infrastructure here in the US. I think most of the interest and involvement will be around how we can find additional sources and supply to help us build infrastructure here. Clean technology investment, smart grid, for example, are very strong interests of ours. We need a smart electricity system, digital monitoring and control, for instance, to be installed into our system, to help improve energy efficiency.

Q: What's your comment on the infrastructure of China'selectricity system nowadays?

A: I think most of my involvement is with China's national grid. They are very involved in the high-voltage transmission, in fact, probably one of the leaders in the world in this regard. There are some applications in the US, I think, (that) can be used for high-voltage transmission in China. To me, this will be a very good area for China-US partnership - possibilities between our transmission applications and what China is doing with their high-voltage transmission.

Q: Can you tell us a little bit about where you're from?

A: I was born in San Antonio, Texas. I lived there for five or six years. I have some terrific memories of Texas - climbing trees I wasn't supposed to climb, toads in the backyard, and The Alamo (famous battle site in the Texas Revolution in 1836, when Texas was part of Mexico), which was about 10 minutes from our house.

Q: You have your undergraduate degree, a dual major in economics and international relations, and MBA from the University of Southern California. Are you abig Trojan sports fan?

A: I have to confess I'm really not one of those rabid USC fans, although I enjoy watching USC football. Actually, some of their other sports, like swimming and track and field, are just as exciting to watch.

Q: So how did you get your start in banking?

A: I was entering my senior year at college, I was thinking about either going into the foreign service or banking. I applied to some banks, and I ended up getting kind of the dream job working part time in the international studies section of the economics department of Security Pacific Bank. A year later when I graduated, they gave me a full-time job, which is why I went to school at night for my MBA.

Q: What brought you to Edison?

A: Actually, it was John Bryson (former Edison CEO who later served as US commerce secretary). We got to know each other when I was working at First Interstate Bank, which was the subject of a hostile takeover, and he was on the board of directors. He said if you don't want to leave Los Angeles, why don't you come look at Edison? And that's how I came to Edison.

Q: How did you get started with running marathons?

A: Back in high school I was a strictly average athlete, but I enjoyed it. I was a swimmer and a cross-country runner, but then I became a heavy smoker. I smoked two packs a day or more for years. It was a struggle to get there, but I finally quit in 1988. When I was here at Edison, I started going to the gym downstairs, and one of the trainers worked out a whole marathon program for me. I really fell in love with the training - to watch how your body can go through such a change and end up being capable of doing something like that. I love the running and also do triathlons and cycling events. I'm completely addicted to the competition. I love that part.

junechang@chinadailyusa.com