When I saw the report, I forwarded the link to two colleagues retired from the NSA. One of them told me that the NSA did not create this capability but was only exploiting data that the carriers collected so that they could provide the emergency services (fire, rescue, police) with the geographic origin of 911 calls. It may well be that NSA did not create the capability but they did create CO-TRAVELER, the program. I seem to recall that the privacy advocates (e.g., ACLU, EFF, EPIC) speculated on precisely this "misuse" when this application to 911 was first discussed.
Note that the NSA does not use this capability in the same way that the emergency services do. They are not so much interested in the origin of calls in real time. Rather, they are interested in who may be geographically associated with a target individual in the past. As in the so-called 215 program, the NSA collects all the data and stores it for an undisclosed period of time. As in 215, the NSA asserts that they simply collect all this data on speculation, "on the come," that they hardly ever query it, that they are not looking at associations in general but only for associations to specific target individuals, and that there are controls in place to resist misuse and abuse.
(I am not the only security professional to assert that the mere existence of such a capability all but guarantees abuse and misuse. Edward Snowden has demonstrated the limitations of these controls. The only difference between Snowden and the other rogues in NSA is that he went public.)
This capability is not the problem. The program is not the problem. Surveillance is not the problem, at least not yet. Secrecy and deceit are the problem. This is one more example of the class of programs the very existence of which the administration repeatedly denied last spring. While one can make a case for classifying sources and methods, secret government programs are antithetical to the Rule of Law. That is a distinction that appears to have been lost on President Obama and Directors Clapper and Alexander.