Energy, Cont’d
California’s energy crisis is very real,all too real for the thousands of businesses throughout the state which entered into the I-6 or other Interruptible Service Programs. Promoted to businesses as a way to reduce expenses on energy usage with minimal risk, the I-6 program turned into a way for the state of California to keep the lights on, at great expense to the I-6 businesses, which were asked repeatedly in December and January to shut down or face huge penalties when energy supplies got tight.
But recently the California Public Utilities Commission finally stepped up and did what should have been done long ago: The Commission agreed businesses participating in the I-6 program were not being treated fairly. In a 4-0 vote, the CPUC allowed companies to opt out of their contracts on a date certain and without the onerous conditions originally proposed.
The inequities of the Interruptible Program as it evolved were enormous. The I-6 companies expected to be able to opt out of the program last November when it became evident that they would be asked to shut down almost daily. But they were told by the CPUC that they no longer had that right.
The CPUC’s change of heart, at the same time the state is struggling with the continued threat of almost weekly blackouts and skyrocketing rates, demonstrates that the commissioners finally got the message that businesses want and are willing to do their part to conserve and fix the energy mess, but not at the expense of going out of business.
The Orange County Business Council and the companies that joined forces with OCBC deserve kudos for raising these issues to a higher profile and securing a favorable outcome from the CPUC. By getting the word out through media outlets like the Orange County Business Journal, we raised the consciousness not only of the business community but of the community at large.
California’s energy crisis is real and it won’t be solved overnight. There are still monumental and complex issues to resolve. PG & E;’s bankruptcy filing indicates that decision-makers still have not identified real solutions to the root causes of the crisis. Unfortunately, businesses as well as consumers will still face hefty increases in energy costs that will cut deeply into profits of healthy companies and threaten the viability of others. Companies considering expansion will expand elsewhere. Jobs will be lost. We must immediately develop a long-term plan that sustains us through summer and minimizes long-term losses to our state’s economy.
The reasonable outcome in Phase I of the I-6 rulemaking process should send an important message: Business must unify to represent its interests with decision makers and to offer constructive solutions to the energy crisis. The Orange County Business Council serves as an effective voice for Orange County business community on energy and other important issues affecting the business climate and our quality of life, and as an effective facilitator for these efforts.
Steve Bone
(Bone is president of The Robert Mayer Corporation in Newport Beach and a director of the Orange County Business Council.)
Gil Amelio, Cont’d
I read with interest the April 9 letter from Mike Melia, who evidently blames Gil Amelio for the demise of ThemeWare, an Internet company whose business model failed along with thousands of others around the country based upon the dot-com paradigm.
I met Gil Amelio in 1999 when my firm raised a round of seed capital for a small company in which Gil was an investor. I have met a lot of high-level professionals in my 25-year career but I was especially impressed with Gil’s intellect, his thoughtfulness and, surprisingly, his patience with sometimes unpredictable entrepreneurs. In this company, he served as a director without compensation and invested a significant amount of cash in the start-up phase.
With regard to successes, when Gil joined National Semiconductor the company had a market capitalization of approximately $500 million. When he resigned, the market cap was around $4.5 billion and he left a substantial amount of money on the table to join Apple. For an inside story of the Apple experience, I would recommend reading Gil’s book, “On the Firing Line: My 500 Days at Apple Computer.”
At ThemeWare, Gil had what many would characterize as a lucrative management contract. It also should be pointed out, however, that he personally invested more than $1 million in the company, which he since has written off.
In business, as in professional sports, sometimes you win and sometimes you lose. But in all cases, top talent does not come cheap. I have observed Gil Amelio for some time now and two things are evident,he’s not afraid to swing the bat and he puts his money where his mouth is.
James L. Watts
President & CEO
Pacific Summit Securities
Irvine
