Author Oliver Goldsmith penned the famous phrase, “Ask me no questions, I’ll tell you no fibs.” Although it’s a memorable line, it’s just the opposite of what businesses should do in their site location search.

Companies that are expanding, relocating or opening new facilities need to ask questions — and plenty of them. Of course they should be gathering information from cities, counties and economic development organizations. But utilities are also key players in helping businesses find the right location.

“It’s good for customers to ask lots of questions, so they understand the business environment and the services utilities offer,” said Dennis Hall, economic development manager for Nebraska Public Power District.

Expansion Management surveyed experts at several utilities, asking them to list key questions companies should ask them during their site search. Here are some of their top suggestions.

1. Does your utility have the power capacity and infrastructure serve my project?

The answer will depend on many factors, including the demand your facility will place on the system. In addition, a utility’s ability to provide power may vary greatly depending on your location within its service area. Businesses should ask about plans to increase the power supply and how those will affect the cost of service.

2. How does your utility acquire power?

According to Hall, it’s helpful for companies to know whether utilities generate their own power, or are dependent on the resources of other companies. Related to this question is the nature of the electricity’s source, whether it is coal, natural gas, nuclear, wind, hydroelectric or some other form of co-generation. This matters because each source has its own price variables.

For example, natural gas prices can be volatile, while coal prices are relatively steady, said George Powell, director of economic development and retail services for the Kansas City (Kan.) Board of Public Utilities.

3. How much will it cost to serve my project?

The answer to this question is likely to be, “It depends.”

Where exactly does your company want to locate? Can the utility serve that location without building additional infrastructure? For example, urban Rochester, N.Y., has more capacity than its suburbs and outlying areas, said Clyde Forbes, an economic development manager with Rochester Gas & Electric and New York State Electric & Gas.

“The city centers, which used to be the hubs of industry, are sitting idle,” he said.

Much of the cost will depend on your facility’s requirements. Some types of businesses, such as computer data centers, may require redundant sources of energy and a substation, increasing your project’s budget.

To help make the best possible estimates, Hall suggested that companies ask for conditions of service, a history of the company’s rate increases and its forecasts for future rates.

4. What incentive programs does your utility offer?

Utilities may offer discounted rates and help offset power infrastructure costs. Forbes’ two utilities, for example, offer rate discounts and funding assistance for qualified projects. These range from incentives that assist new companies in general to programs that reward businesses locating in specific areas of the state.

Although they don’t administer them, utilities will also be familiar with state and local incentive programs that your expansion might qualify for.

5. How closely does your utility work with local governments and economic development organizations?

Utilities can work together with these entities to help create the best package for your business and streamline the process.

“For ease of implementing the project, the company would want to see if a system is in place for a unified approach,” Forbes said.

6. How reliable is your utility in general, as well as in the locations I am considering?

Utilities can provide a report on service interruptions in their entire territory and for specific locations. They can also estimate the costs of enhancing reliability through dual feeds or other reliability measures. Keep in mind that the distance electricity must travel is in direct relationship to its vulnerability to interruption, Powell said. Long-distance transmission is not as desirable as a nearby power source.

7. How will you supply power in the event of an emergency?

Does the utility have a commitment from another supplier to back it up in a time of crisis? Has it committed to provide power for other companies in a similar situation? Is there an emergency power reserve and crisis management plan?

“You want to see that a utility has the ability to access power from its neighbors,” Powell said.

8. What level of customer service will you provide?

Will a utility go away after you’ve found a location in its service territory or will it continue to provide assistance? Many utilities provide ongoing engineering support to help companies make the most efficient use of power.

9. What kind of financial shape is the utility in?

Find out how much debt the utility is carrying and its bond rating.

“The ability to repay and borrow money all translates into the cost per kilowatt hour,” Powell said. “Financial stability is a big issue in utilities. You’ve got to have cash on hand to carry out business.”

10. What kind of information can you provide about the area?

Utilities provide some of the best site location information to expanding companies. Much of it is accessible via the Web. Nebraska Public Power District, for example, offers a database of available buildings, community profiles and extensive information on the business climate of the Cornhusker State, Hall said.

Just ask

The bottom line is don’t hesitate to ask because utilities are eager to answer. Powell even urges prospective customers not to do anything to complicate the process.

“One of the basic ways for a manufacturer to interact with a utility is to just come and speak with the utility and not try to mask it with a consultant or an attorney,” he said. “Whoever they send needs to be adept at the customer’s requirements.

“Attorneys will be looking at agreements and don’t really understand the power needs of the facility,” he added. “We need to be able to speak the language of service. The most important thing is for the utility and manufacturer to sit down and have the manufacturer say, ‘This is what I need,’ and have the utility to say, ‘This is what I can deliver.’”

Now who wouldn’t want to have a conversation like that?