After all, utility companies play an important role across the country in site location decisions.

They can assist with property searches, they usually provide community profiles, and they frequently offer special power rates. In fact, the wealth of information that utilities can provide to an expanding or relocating company should never be overlooked. 

With deregulation in full force in some states, and on the horizon in others, the fact remains that utilities will continue to impact business development. And, according to utility companies, there are some key things businesses on the grow should know that could make the site selection process a more efficient experience for all involved.

Read on for some insightful tips —straight from utility companies.

1. Be specific when it comes   to project parameters. In order to ensure that a utility can help your company in the best way possible, it’s imperative that a company be as specific as possible about its new or expanding project parameters. This will facilitate efficiency during the project, and will help rule out any unsuitable sites right off the bat. 

Part of this process includes defining what problems your business is trying to solve, and what the motivation is for expanding or finding a new location. 

Donna Buchheit, manager-economic development for Pennsylvania’s PP&L, Inc., suggests that companies specifically state if their project revolves around space issues, work force matters, or improved market accessibility. The more the utility knows about the project requirements, the better it will be able to assist your company.

Many times, companies are reluctant to lay all their cards out on the table, in order to keep some information private. All companies have a vested interest and want to find the best fit for their needs, physically and fiscally. 

However, up-front facts, on as many issues as possible, will be conducive to successful, timely site location decisions.

“If I were to have to mention only one thing, it would probably be that companies should identify in some type of order of importance what the criteria is for them when they move,” said Todd Gordon, business development manager with New Jersey-based Conectiv. “What exactly do they need out of a location?”

Gordon said certain factors will predetermine if a site will make the cut or not, and knowing these things early on in the process will aid in qualifying cities and sites before either party invests too much time.

2. Do some preliminary research on sites that could  be of potential interest.

Remember that for a company in the initial stages of researching an expansion or relocation site, there are plenty of routes to travel on the quest for community data.

There are Web sites galore that are chock-full of community profiles,  available property listings, incentives information and much more. Web sites are typically maintained by states, cities and utility companies.

In addition, a phone call to a regional economic development agency or a utility company will likely uncover community brochures and booklets. “It’s helpful if a company is research-oriented,” suggested Clay Hathaway, business development project manager for Oklahoma’s Central & South West Corp.     

“If a company can tell us a little about the reasons why they need to locate in an area, this would allow us, as a utility, to gear our community proposals more specifically to their needs, whether it be labor force information, or otherwise,” he said. “We can provide just the information that will allow the company to narrow their search more quickly.”

Often, a company may simply know it needs to locate in a certain location because a client requested it.

The more information a company has beyond this, the more a utility can help. 

For example, what are your building, transportation and power needs? A few answers to questions like these can go a long way in finding your firm the right site in a hurry. 

3. Know that lead times are crucial for a successful  start-up.

Utility companies agree that lead time is key to a project’s success. Obviously, the quicker a company can make a decision on a site or building, the better chance it has of being up and running in the time frame desired.

In today’s environment, where most projects needed to be done yesterday, a timely site decision can go a long way toward impacting an on-time start-up.

4. Be aware of deregulation issues.

“There is something else that utility companies want people to know about, and that would be deregulation,” said Grant Thomas, project manager, economic and business development for Southern California Edison. 

“Most companies don’t know enough about deregulation to take advantage of all the things it offers. If they don’t know the facts behind what we’re able to represent, then they’re not going to be able to take advantage of all of the tools that we have to offer them.”

According to a nationwide survey unveiled recently by RKS Research and Consulting, customers of public power systems are less aware of deregulation now than they were one year ago. 

Only 50 percent of business customers surveyed were aware of deregulation, as compared to 70 percent surveyed in 1998. 

However, more than two-thirds  said they believe deregulation will bring lower prices and comparable or better service. 

5. Ask about site selection services that utilities offer.

Many times utility companies offer services that rival those of a site selection consultant. 

They can provide a confidential perspective on a community and its economic climate. 

Moreover, utilities often are in tune with the real estate market in their service territories. 

They often partner closely with real estate agents and other economic development professionals to extract details on available greenfields, brownfields, shell buildings and other sites.

More and more utility companies are making their site databases available on the Web.

Indiana-based Cinergy/PSI is just one industry representative, but its services provide a glimpse into what utilities across the nation can offer to expanding firms.

“We have a staff of 15 and resources to assist in the site selection process and to identify advantages of doing business in Indiana,” said Marie-Christine Pence, economic development project manager. “This includes an extensive database of 500 sites and 150 buildings, as well as aerial photographs, community and county data and utility service information and rate studies, all of which can be specific to a company’s requirements.

“In addition, our services are free and we will work with the company in a confidential manner.”

6. Inquire about the availability of economic development rates.

In addition to exploring the services a utility offers, it’s also wise to check into the availability of economic development rates.

Southern California Edison is among the many utility companies offering special rates.  The company’s rates are geared toward encouraging manufacturing and film industries to expand and locate in California. The utility has three economic development rates — for retention, expansion and attraction.

Of course, for most economic development rates, certain requirements must be met and there are thresholds of usage that must be maintained.

7. Be prepared to state what your company’s deal breakers are.

Ultimately, the expanding or relocating company is the only entity with knowledge of what its deal breakers are. 

They could be the time frame, specific job skills, infrastructure, rail accessibility, energy costs or financing, just to name a few. 

When it gets down to the wire, the must-haves are what really count, and the earlier in the game these can be conveyed, the better a utility can address a company’s needs. 

And when it comes to expansions and relocations, efficiency is the name of the game.    

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