Clips/ Feature Article

California distributors respond to the energy crisis while other regions prepare for shortages

NEWTON, MASS. -- The California energy crisis has created a national concern for the uninterrupted supply of energy. According to the National Electrical Manufacturers Assn., 73 percent of the nation's energy is consumed in the commercial and industrial sectors.

NEMA president Malcolm O'Hagan recently addressed the House Energy and Commerce Subcommitee on Energy and Air Quality. He said NEMA supports energy efficiency and conservation as components of a national energy policy.

"Energy efficiency and conservation don't mean sacrifice and reduced access, but rather doing more with existing capacity," said O'Hagan.

He suggested reducing energy usage through more efficient products and systems and called for market-based incentives to drive efficiency and conservation. NEMA claims conservation measures could save the need for 600 power plants over the next 20 years.

For California businesses, the issue has become one of daily concern and many companies are thinking of ways to become more energy efficient for the long term.

"In the Bay area, business was down 25 percent and now costs are up 25 percent," said Bill Jatho, president of Mechanics Tool & supply, Oakland, Calif. "For some businesses, energy costs are up 400 to 500 percent."

Mechanics Tool & Supply and many of its customers have experienced black-outs, said Jatho. The cutting tool and abrasive distributor has responded with conservation measures, including reduced lighting and shutting down office machines whenever possible.

Jatho noted that many of his larger customers already have their own back-up power sources, but that all businesses are Looking for ways to conserve.

"Customers are forced to ask for energy-efficient equipment," said Jatho. "They are forced to turn to everyone, including distributors."

One distributor that has seen increased interest in efficiency and conservation measures is electrical distributor OneSource Distributors, Inc., San Diego, Calif.

"We have many businesses and homeowners coming to us to downsize their energy bill," said marketing manger Carol Ulak. "It has been big with new home construction."

Lighting has been a major source of energy-saving products, said lak. She said OneSource recently cooperated with lighting manufacturer Phillips in a marketing campaign.

"We are doing as much as we can to provide information and education," said Ulak. "We have held seminars on energy management with suppliers of energy-saving products and Southern California Edison."

The Department of Energy estimates that 20 to 40 percent of energy used in commercial establishments is consumed in lighting. Technologies developed during the last 10 years could reduce lighting costs by 30 to 60 percent.

Sun Valley, Calif.-based General Industrial Tool is addressing the situation by helping its customers become more efficient in their industrial processes.

"Most of our customers have a critical need for electricity to operate their machinery," said vice president of operations Karen Boyle. "They are cutting back on lighting and air conditioning. They aren't looking for energy solutions yet, they are looking for the simplest savings."

Boyle said the way General Industrial Tool helps its customers become more energy efficient is through faster and less costly production processes.

"If we can improve our customers' productivity, they are using less energy," said Boyle. "We try to help manufacturers produce more with less waste."

General Industrial Tool has also looked to its own processes to save energy.

"We have just moved into a new location," said executive vice president Kathleen Durbin. "Energy efficiency was one of our top concerns."

Durbin said the new location incorporates sunlights, triple-paned glass and efficient insulation. The new efficient lighting design includes sensors and concrete painted to reflect light and reduce lighting needs.

In Santa Ana, Calif., Shamrock Supply president John O'Connor said it has been necessary to provide a flexible schedule to accommodate his customers.

"Many businesses are focusing on their schedules to avoid peak usage hours and blackouts," said O'Connor. "This means manufacturers are operating third shift and weekend hours and we are making deliveries early in the morning."

Many companies have looked to generators as a means of keeping the electricity flowing.

"Interest in emergency generators far exceeds that of Y2K," said Tom Claycomb, president of Bay City Electric Works Inc., a Kohler distributor in San Diego, Calif. "We have been unable to respond to all of the requests."
Claycomb said customers represent an entire cross section of the economy and that he's tripled the capacity of his rental fleet this year alone.

Bay City Electric Works intends to explore alternate power such as wind, solar, and fuel cells, said Claycomb. At the moment, however, the company is doing all it can to service its customers, he said.

The concern for emergency power is not concentrated in California alone.

Kenneth N. Kinsley of Kinsley Power Systems, a Hartford, Conn.-based generator distributor, said budgets in the Northeast are open to emergency power systems. Sales are up this year and have more than doubled in the last three years, he said.

"Data centers, factory production lines and even grocery and retail stores can't do business if the power is out," said Kinsley.

Kinsley said his company has been kept busy doing maintenance of generators and has expanded its rental fleet. He said there is concern that New England and New York may experience power shortages during the hottest summer weather this year.

"The attention to emergency power will remain," said Claycomb. "Just as 25 years ago, air conditioning was optional, emergency power will be seen as essential."

Energy efficiency and conservation also promise to remain ongoing concerns of American business.

COPYRIGHT 2001 Cahners Business Information in association with The Gale Group and LookSmart.