So, this expansion thing has you a bit over a barrel, huh? Your expertise is in manufacturing processes, or accounting, or managing people - or some combination of the above - but definitely not in heading up an expansion or relocation of the business.

If there was just someone out there who could simplify the whole process, you'd sleep better at night and feel better about the future of the company. After all, the company has grown to the point where expansion is a necessity, not just another starry-eyed goal thrown on the table during last year's planning meetings.

Well, there's good news and bad news. The bad news is that no outside person or organization can pull this off for you - at least without some help from you. The company's future is on the line, so some tough decisions have to be made.

The good news? Help is very close by, from a source often overlooked in the expansion or relocation process - the utility company.

Utilize all your resources

The key to any important decision in business, and especially an expansion project, is information. With the right information, executives make decisions with confidence and the company has a chance to prosper.

Enter the local utility company. Yes, that's right, the firm that provides the juice for the manufacturing plant, or warehouse, or office should be near the top of any expanding company's to-call list.

Utility companies have been providing site selection services for decades, although the level of sophistication varies from utility to utility.

One might wonder exactly why utilities offer these services. What's their motive? Are those motives counter to the goals of the company?

Think of it this way. Utilities are a business - and as such face many of the same pressures that all businesses encounter. And, despite the growth of deregulation in the utility industry, most utilities' growth are restricted by geographic boundaries.

The only way for them to grow their business - by increasing power consumed and/or number of customers - is to either help companies grow in their service territories or attract new ones from the outside.

"We understand the pressures put on a business," said Dennis Chastain, vice president of economic development for Georgia Electric Membership Corp. "It's also a way for us to grow our business and at the same time to grow the economy of the state and community."

The utility benefits and the company benefits. Not a bad deal.

"We'll do anything we can legally to help out a company," said Robert Forsblom, director of economic development with Buckeye Power, in Ohio.

The extent of that help varies between utilities, but there's one area that most utilities excel in: providing information.

Information on buildings, sites always important

It may be stating the obvious, but expansions or relocations require a piece of ground and a building. Now, utilities don't claim to be real estate brokers, but many do have vast databases of available facilities and sites within their service areas.

"We do a lot of work in site identification," said Richard Heupel, manager, member and key accounts, for Hoosier Energy in Indiana. "We have photos and a lot of information on sites available upon request.

"Within the first quarter of this year, we'll have all this on our Web site where companies can enter specifications and then get search results."

The detailed information can be especially valuable to an expanding company. Not only are things like square footage and location listed, but other key pieces, like load capacity, aerial photographs, demographic data and incentives are listed, just to name a few.

Illinois Power, which serves much of the southern half of Illinois, features an expansive set of data on industrial sites in its service territory. The utility has brochures on 350 sites in its service area, which can instantly be forwarded to interested companies.

"We want to be able to slam-dunk the properties issue," said Steve Warren, economic development manager for Illinois Power. "The property information, along with accompanying community profiles, makes a huge impression on companies."

For example, the community profiles by Illinois Power include information on the local labor force, with hard data on availability, skills, unionization rates and job training programs offered.

Confidentiality a key

Information is great, but if it's not obtained in a confidential manner, on YOUR timetable, then it loses its value. If curiosity killed the cat, then lack of confidentiality killed many a business expansion.

The advantage of working with a utility in the preliminary stages of a site search is that a utility, within its own service area, is free from bias toward certain locations. The utility doesn't really care where you locate in its service area, so long as you do set up in its area.

This means the utility won't be spilling the beans about the company's interest.

"We're obviously trying to promote our area, but we can do so in a confidential manner," said John Sundergill, director of economic development for Baltimore Gas & Electric, which serves the Greater Baltimore, Md., area. "We're professionals, we've done this before, if you call us, it won't become public knowledge the next day."

Confidentiality can be crucial in the site selection process, especially in the early stages. If the owner of a piece of real estate finds out who is interested, suddenly the price goes up and the project hits an unneeded snag.

Whatever the reason for anonymity, utilities permit the company to disclose its identity on its own timetable, not at the whim of a community.

Internet impacts process

The biggest development in the last decade in how utilities share information with companies is, without a doubt, the Internet. Before contacting anyone, companies can search databases on a utility company's Web site and get information on real estate throughout that utility's service area.

Many utilities also have information about state and local business incentives listed on their Web sites. The Web site can also be a place to find out who to contact from the utility with questions about expansion or relocation.

"With the Web, companies can get a lot of preliminary and detailed information all right there," said Chastain, of the Georgia Electric Membership Corp. "We have aerial maps, you name it. And if people have more questions, we can post information on a secured site and get something to people in minutes, not days."

The Web site of Arizona Public Service is a good example of what a company could potentially find on a utility's Web site. The APS site features links to statistics on Arizona's economy and to the Arizona Department of Commerce, along with information on specific sites and communities.

"We've got some significant hits on our available buildings, some companies that became interested in Arizona through the site," said David Bentler, business development senior consultant with Arizona Public Service. "We partner with all the economic development organizations in Arizona, and have contacts all over the state."

Sometimes it's not what you know...

As the saying goes, in life - and in the site selection process - it's good to be connected. And no one can link a company to a prospective community like a utility. Think of the utility company as the lifelong resident of a town who knows everyone, and can get you in the door to speak with anyone.

Some utilities can even get you around the whole state in a day, via a helicopter. APS is one of the utilities with a helicopter at its disposal.

"The perspective from the air is so important," said Bentler of APS. "People can see where the freeways are and the rooftops their employees will be living under. Plus, it's a quick way to see a lot of sites in a short amount of time."

That presence in a multitude of cities and towns comes in handy for an expanding company. A utility can save a company time in contacting leaders in every community the company might be interested in.

"The main thing we offer is that we serve all four corners of the state. We cover 73 percent of Georgia," said Chastain. "Because we are in the communities, we know the whole state very well. We can coordinate a trip for a company. We'll set up the appointments, make the contacts, make sure everything runs smoothly."

And while most utilities don't serve as real estate brokers themselves, chances are they can put a business in touch with the right realtor, or banker, or whoever the company needs.

"We can put the company in touch with the realtor, or be the spokesperson for the company for a short period of time," said Buckeye Power's Forsblom. "We're in 77 counties in Ohio, so we have good information on a lot of the state."

Talking to the right people in a community or state is important in the beginning stages of an expansion project, especially if the company wants to be set up in a short period of time.

"We recognize that this is like a 10-step process," said Illinois Power's Warren. "Our value many times is on the front end. We can serve as the pivot person in the whole deal. I like to tell companies that I can get you in touch with the right people, so it's imperative that I have strong relationships with the leaders in the communities we serve."

While Baltimore Gas & Electric doesn't serve a wide geographic area like some of the other, more rural-based utilities, it does offer its own advantages. The Greater Baltimore metro covers 10 counties, all with different modes of government and regulations.

"We've got direct contacts in construction, banking, the legislature, you name it," said Sundergill of BG&E. "Companies can use our knowledge, skills and contacts to make the decision that's best for them. We can assess the business incentives of all the state and local organizations."

When do I contact the utility?

The site selection services offered by utilities sound great, but at what point should a company involve the local utility in the process? Of course, the answer depends upon the company's needs, but in almost every case the utility should be consulted in the early stages of an expansion or relocation.

If a company is trying to locate a site in another state and be operational in a period of months, not years, then the utility is a great place to start. The utility's only bias is to its own service area, not just one community.

Another case where the utility needs to be contacted early is with an energy-intensive company. If the company consumes a lot of power, then there's more to be gained by lowering power costs through cost incentives, efficient equipment, proper electrical planning in the new facility or a combination of all these options.

"The more utility intensive the company is, they may want to come to the utility first," said Sundergill of BG&E. "We offer discount rates, and we can also look at the specifics of each facility to make sure it fits the company's energy needs."

A utility can also help a company quickly decide if that site is environmentally sound. Hoosier Energy funds Phase I environmental reviews on greenfield sites.

"We'll make sure the soil types and physical characteristics of the site are suitable for manufacturing, or whatever the company plans to do there," said Heupel of Hoosier Energy. "We don't claim to be a one-stop shop, but we can help streamline the process."

Don't ignore power needs

Quickly opening a new facility is great for an expanding company, and a utility can go a long way in making that happen. But don't forget that the utility does provide power, and that aspect should also be examined in the expansion process.

A good example of this is Scott Aviation, in Lancaster, N.Y. The maker of commercial aviation oxygen systems was founded in Lancaster 70 years ago, and company officials decided last year to construct a new 30,000 square foot facility in Lancaster, and to add 80 workers.

New York State Electric & Gas provided the company with competitive prices through its Small Business Growth Incentive, and also worked with the company on improving the electrical system at the site. Scott Aviation, a subsidiary of Tyco International, worked with NYSEG and other state and local organizations to garner other grants and tax credits.

"There is a sense of urgency to help manufacturers that wish to expand," said Bob Clark, manufacturing manager for Scott Aviation. "Each agency was able to bring expertise to the table, and this cooperative effort served us well."

Scott Aviation's story shows that utilities aren't just concerned with companies expanding to their areas from outside areas, but that they will pay attention to the businesses already there.

"The key is, we're free," said Bentler of APS. "We're a valuable resource and all companies have to do is ask."

Why Look to a Utility

When Expanding or Relocating?

_ Exposure to more sites in various communities

_ Access to key contacts at the state and local level

_ Maintain confidentiality in initial stages of search

_ Work with people that have substantial experience in

economic development

_ Make your new facility as energy efficient as possible

_ Get unbiased information on the utility's service area

_ Sources for contacts in other aspects of site selection,

such as real estate, banking, construction, etc.