Power surges, high winds, peak power demands and bad storms make the lights flicker and dim or go out altogether. That may not be so bad while watching television, reading by a desk lamp or tooling around on the Internet.
But for high-tech and manufacturing companies, constant power is the only way to do business. Not only that, power must be reliable at very high rates of delivery. Redundancy and reliability are possibly the two biggest buzzwords in the high-tech industry, from data and call centers to microchip and semiconductor manufacturers.
How much reliability do you need?
For many companies, reliability isn't an option - it's a must. A loss of power could be disastrous.
"It depends on the type of company," said Joe Russo, of Niagara Mohawk Power in New York. "I guess with the heightened awareness of the situation with power shortages (in other states), suddenly what was taken for granted by companies in the past has become more of a focus for them. Because of this, companies are being more thorough in terms of their investigation of a region they may be looking at."
Transmission lines are the electron highways to customers. New York is upgrading this infrastructure to service the southern section of the state.
"With the heightened interest in whether power is going to be there and reliable, it's put the utilities into the position to make that case," said Russo.
New York deregulated its power utilities in 1998. Many utilities sold their generating plants and focused their attention on energy delivery.
High-tech companies are very energy intensive. Therefore, reliability plays a key role in the site selection for these industries.
"They need zero interruptions," said Russo. "They require redundant systems. A lot of companies that manufacture(high-tech components) use equipment more sensitive to voltage dips. Certainly, you have to listen to your customers."
Two years ago, when Borg-Warner wanted to relocate its powdered metals manufacturing plant to a different building in Cortland, N.Y., Niagara Mohawk had to come up with some creative solutions to win the project. As the process wore on, Borg-Warner's plans kept growing larger in scope, demanding more of a power load, from 2,000 to 7,500 kilowatts.
To make the project work in a building that was not equipped to handle heavy manufacturing, a new customer-owned substation was built near the facility, using creative financing tools to keep the company's costs down.
Niagara Mohawk created competitive electric service prices with its Business Attraction Flexible Rates program. The utility also offers negotiated electric prices to new or expanding customers. Businesses find delivery rate discounts in New York State Empire Zones.
Borg-Warner plans to invest $35 million over five years in its new facility, which operates 24 hours a day, seven days a week. The project created 300 jobs.
Water availability is just as important as power availability to the chip manufacturing industry, according to Russo. Preparing a site for potential customers through the Semi-NY program facilitates the development process through pre-permitting.
Russo said the state would hire a consultant through its Semi-NY program to develop a model for the infrastructure required by semiconductor manufacturers.
When HSBC Bank was searching for a site to locate its $53 million data center in May 2000, Niagara Mohawk helped find a site in Williamsville, N.Y., which features a separate dual-feed electric service.
The service originates from two separate substations, served by different transmission circuits. Creativity and critical thinking are key traits for a utility to possess when it comes to business, especially high-tech, attraction and retention.
Niagara Mohawk offers companies an energy cost and conservation analysis on a new location, along with power quality services, electro-technology referrals and research and development services. The utility also provides a list of approved natural gas suppliers to help corporations better negotiate packages.
Clay Hathaway, community development manager for American Electric Power, said chip manufacturers typically have huge infrastructure requirements. This includes multiple feeds with redundant power, along with enough water and sewer capacities.
"What we do is across the board," he said of American Electric's work and presence in 11 different states.
Companies are looking for low-cost power just as they would look for locations with adequate education and other amenities, according to Hathaway. The companies are also looking for transmission lines.
Site preparation more important
"It's such a different landscape based on each state and county," Hathaway said. "Normally, we help find their sites, and help determine which area's system meets their requirements."
"The Nebraska Public Power District operates in 91 of the state's 93 counties, said Dennis Hall, the utility's economic development manager. "We have an economic development team that is available to help companies look at Nebraska locations."