Targeting the Utility Industry - Power

Here is how I picture the current economy. Imagine seemingly strong companies as World War II bombers flying through the flack being thrown up by the Nazis (the economic storm) and - if you remember the old war movies - the planes are dodging and weaving, trying to make the right adjustments to get through the hailstorm of shells...then one by one, as the damage builds or they take a direct hit, they sputter, drift, people bail out - some with and some without parachutes - and slowly go into a death spiral as they hurl towards the earth. The planes that actually get through the hailstorm have a combination of luck and skill, most have some kind of minor damage, but at least they make it back to the safety of the English airfields.

For most firms, getting through to the other side of this economic storm involves making the right moves and having a great deal of luck. In our brainstorming of what industries should be somewhat recession proof, we hit upon public services including utilities. Utilities provide a public service and have some insulation since they must provide a service to the citizens. So we decided to hang out with potential customers at one of their conferences.

The American Public Power Association (APPA) hosted an Engineering and Operations conference in Austin from March 20-26 this year. Not being overly scientific, we saw the word operations, got a list of past attendees, and decided that Operations Associates should be at this meeting. We do have some experience working for power companies including Keyspan and National Grid, so we have experience in this industry. What we did in the past is help consolidate operations, including yard and warehousing, so that they improve customer service levels while reducing inventories and warehousing footprints. What utility doesn't like saving money in these areas?

On the agenda for the conference are four smart grid sessions, a host of renewable energy sessions, and a few sessions addressing the future of the industry. One of the most eye opening sessions was about most of the country wanting to improve energy efficiency - except for the Southeast. He actually named Duke Energy as a firm lobbying hard AGAINST energy efficiency, renewables, and green power. For those of us that live in the southeast, we understand their interests -- nuclear power. Funny that General Electric's wind energy unit has a large operation in Greenville, SC - right in the heart of Duke Energy country. In stark contrast to Duke Energy is Austin Energy. Austin Energy (Austin being the liberal hotbed in Texas as well as the state capital) was present in force at the conference showing off all the things they are trying out including plug-in hybrid cars, free electronic thermostats, solar energy rebates to home owners, long term green energy contracts to commercial and industrial users, smart meters, wind programs, and ABOVE ALL - consumer education programs. They are not hiding and hoping all this "green stuff" is just a passing liberal trend led by Al Gore and a bunch of hippies - a hoax according to one lawmaker. They are leading the way in a number of areas - and they say it is paying dividends both economically as well as getting them in front of the curve - this from the lips of their Chief Strategy Officer.

Overall, the conference was good for us in that we now have a better understanding of our potential customer base and what they are thinking about.