Common goals are business goals

Electric Perspectives, Jul/Aug 1996 by Bernald, Mary Ann

As electric utilities cut costs to become more competitive, some executives question their companies' traditional support of community programs. Can they afford to continue them? What kind of return do they earn?

Industry leaders with foresight recognize good reasons for sponsoring community programs. Consumers expect corporations to be concerned about the community's social and economic needs. Moreover, citizen advocacy groups play an increasingly active role in our industry, forcefully presenting to media and policymakers their concerns about issues like air quality and pricing.

In fact, as the public debate about industry restructuring intensifies, the value of strong community relations grows. Community support for your company is crucial as policymakers struggle to reshape the industry, and customer loyalty is vital in a more competitive world. The simple truth is that a company cannot achieve its business goals without taking into account the concerns of the greater community within which it operates.

That's why Edison Electric Institute established the Common Goals Awards. Started in 1987, the awards affirm the value of social partnerships between electric utilities and the communities they serve.

This year's award-winning programs (one in each of six areas) show that doing good for the community and doing well for shareholders are not mutually exclusive goals.

* Community responsibility/special needs. "Driving Drunk Will Put Your Lights Out" is Tucson Electric Power's program to educate young people about the dangers of mixing alcohol and driving. The company developed an advertising campaign and worked with law enforcement to create an education program and to operate roadside sobriety checkpoints during high-risk holidays. In the campaign's first year, Pima County saw a 60-percent decline in alcohol-related traffic accidents and a prom season free of DUI incidents-the first in 20 years.

* Customer satisfaction. Western Resources created its Power Technology Center (PTC) in 1992 to help consumers prevent power-quality problems. PTC provides resources and training in power quality, system harmonics, and advanced end-use electronics and motors. Industrial and commercial customers have sent electricians, architects, and plant engineers (1,000 in all) to one of the PTc's seven different training classes.

* Educational partnerships. Collaborating with South Carolina's department of education and the governor's office, SCANA Corporation equipped a bus with adult literacy specialists and 12 interactive computers. The "Coach" has traveled to businesses across the state, most of which do not have the resources to provide detailed literacy assessment and training. Free of charge, the Coach helps managers and human resources staffs assess employees and develop programs to raise worker literacy

* Energy efficiency. Portland General Electric (PGE) partnered with community leaders to create the City Life housing development-an 18-unit project marrying the best in architectural design, affordable financing, and PGE Earth Smart efficiency measures. The homes were priced from $66,000 to $125,000, and during PGE's Urban Show of Homes, nine sold to people earning below $33,850, which is 80 percent of Portland's median annual income for a family of four. The project originally was going to be "all gas," but PGE demonstrated how much could be saved with electricity

* Environmental partnerships. Georgia Power's Shenandoah Environment and Education Center is a partnership with the Georgia department of education, West Georgia College, the Georgia Youth Science & Technology Center, Morehouse College, and communities across the state. Through the Center, the utility offers environmental education in conjunction with those organizations. The Center is a resource for teachers and students, as well as the site for Georgia Power's research in photovoltaics, electric vehicles, and energy management.

* International affiliate programs. Korea Electric Power Corporation's (KEPCO's) Community Support Program was created in 1990 to promote regional economic development in areas within five kilometers of the utility's plants and to ease plant siting problems. KEPCO donates a percentage of its gross annual sales to a regional support fund-between 1990 and 1995, the contribution was $135 million. Investments in infrastructure, business equipment assistance, scholarships, household loans, and business relocation incentives are part of the program.

A Competitive Edge

Study after study links good corporate citizenship and bottom-line corporate performance. Companies sponsoring programs that respond to a community's social and economic needs hold a competitive edge.

Electric companies are no exception. The winners of the Common Goals Awards show that community involvement can help a utility build allies, enhance its reputation, and foster a healthy business environment-all of which contribute to a company's ultimate success in the marketplace. *