Monthly Archives: November 2012

‘Smart’ Efforts Help Restore Power

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Categories: Energy, Environment, Government

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Some East Coast communities have been able to rebound from Superstorm Sandy faster than others. Part of the reason can be attributed to smart grids and smart power meters. Stephen Goldsmith writes about their impact now and in the future in Governing:

Sandy’s claiming of the title as the second most costly hurricane in U.S. history shows us the advantages and limitations of rigorous planning. The slow and arduous recovery faced by some East Coast communities has been coupled with the impressive speed with which many other communities have been able to return to business as usual. New emergency procedures put in place at the local and state levels deserve a lot of the credit. These included shutting down infrastructure and battening the hatches to protect vital resources and prepare for recovery.

Yet the storm teaches us that the best way to plan for the truly unexpected will be by being prepared to to improvise and by understanding that resilience in times of disaster isn’t determined only by a static disaster plan but to a greater degree by being dynamic and responsive to change. Being dynamic requires real-time data. Recent technologies are beginning to provide more access to more data, allowing analytics to find the patterns fast enough to make it useful during a disaster.

Smart grids, and particularly smart electric meters, played a promising role in improving disaster response and the speed with which power could be restored after Sandy passed. That role was small-scale and local, since electric utilities’ conversion to smart-grid technology has been slower and spottier than desired, but the potential is there for the technology to have a much larger impact as these systems are rolled out more widely.

At best, phone calls and spotty service-outage reports can slowly piece together a hazy picture of the conditions of a power network. But smart meters, programmed to send out a "last call of distress" when power is lost, can automatically report service cuts. This gives a utility company instant access to regional maps of outages, allowing it to prioritize repair-crew mobilization and begin getting service back to customers without them even having to report an outage.

Smart meters also can help identify the locations of particularly tricky "nested" outages, when more than one break is affecting an area. Additionally, smart meters can automatically report getting back on line when power is restored, eliminating unnecessary calls between the utility company and customers or follow-up service-crew visits. Repair crews can move on to the next repair rather than spending time checking on their last one, increasing efficiency and reducing system repair time considerably.

Pepco, the electric utility serving Washington, D.C., and nearby parts of Maryland, is crediting its partially implemented smart-meter system with helping get the power back on for its 100,000 customers affected by outages in the wake of Sandy. The store of information generated by the smart meters not only is available to the company’s repair crews to inform their response but also is aggregated into a regional map available online to give customers a better idea of system conditions.

PPL Electric Utilities’ smart meters allowed the company’s Pennsylvania customers to check on the status of their power’s return online and from the safety and comfort of remote locations, without having to trek out to potentially powerless homes or using the precious resource of repair-crew hours to do so. And while Baltimore Gas and Electric’s smart-meter system is only 10 percent complete, the utility credits the program with facilitating much faster troubleshooting and with replacing phone calls to customers to check on service–calls that often go unanswered–with a quick and reliable stream of information.

The next time a major storm hits, there will be more examples of service-restoration improvements enabled by this technology. In the face of consumer suspicions and resistance to smart meters, utilities need to publicize these success stories to build support for continued smart-grid development. The more data government and utilities can tap, the faster they can act and the more resilient a community can become.
 

Energy Investment Good News for Indiana

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A southwestern Indiana company received very good news from Washington last week. Babcock & Wilcox, developing small nuclear reactors, will receive substantial funding from the U.S. Department of Energy.

Below is a portion of the DOE press release. Learn more about the company (headquartered in North Carolina but with a significant portion of its nuclear development operation in Mount Vernon, Indiana) and its product here.

As part of the Obama Administration’s all-of-the-above strategy to deploy every available source of American energy, the Energy Department today announced an award to support a new project to design, license and help commercialize small modular reactors (SMR) in the United States.  The project supported by the award will be led by Babcock & Wilcox (B&W) in partnership with the Tennessee Valley Authority and Bechtel International.  In addition, the Department announced plans to issue a follow-on solicitation open to other companies and manufacturers, focused on furthering small modular reactor efficiency, operations and design.  

“The Obama Administration continues to believe that low-carbon nuclear energy has an important role to play in America’s energy future,” said Secretary Chu.  “Restarting the nation’s nuclear industry and advancing small modular reactor technologies will help create new jobs and export opportunities for American workers and businesses, and ensure we continue to take an all-of-the-above approach to American energy production.”

This project represents a significant investment in first-of-a-kind engineering, design certification and licensing for small modular reactors in the United States. Through a five-year cost-share agreement, the Energy Department will invest up to half of the total project cost, with the project’s industry partners matching this investment by at least one-to-one.  

The Energy Department investment will help B&W obtain Nuclear Regulatory Commission licensing and achieve commercial operations by 2022 – helping to provide U.S. utilities with low carbon energy options as well as create important export opportunities for the United States and advance our nation’s competitive edge in this emerging global industry. The project will be based in Tennessee and will support additional suppliers and operations in Indiana, Maryland, North Carolina, Ohio, Pennsylvania, and Virginia.

Small modular reactors – which are approximately one-third the size of current nuclear power plants – have compact, scalable designs that are expected to offer a host of safety, construction and economic benefits. Small modular reactors can also be made in factories and transported to sites where they would be ready to “plug and play” upon arrival, reducing both capital costs and construction times. The smaller size also makes these reactors ideal for small electric grids and for locations that cannot support large reactors, offering utilities the flexibility to scale production as demand changes. 

The Mona Lisa, The Scream, The Tom Vilsack: All Pricy Pieces of Art

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Nice article here by The Washington Times showing what some could argue is government excess by the Obama and Bush administrations. I think it’s certainly worthy to keep funding portraits of Presidents and Vice Presidents for history’s sake. However, does every cabinet official need a portrait at these costs? I get that women in future generations shouldn’t be deprived of John Ashcroft’s rugged good looks — or songbird voice, for that matter — but is this necessary?

The Environmental Protection Agency spent nearly $40,000 on a portrait of Administrator Lisa P. Jackson, while a painting of Air Force Secretary Michael B. Donley will cost $41,200, according to federal purchasing records. The price tag for a 3-by-4-foot oil portrait of Agriculture Department Secretary Thomas J. Vilsack: $22,500.

All told, the government has paid out at least $180,000 for official portraits since last year, according to a review by The Washington Times of spending records at federal agencies and military offices across government.

Painting people high up in all branches of the federal government is a long-held tradition for Republicans and Democrats alike in Washington. Taxpayers picked up the tab for official portraits of top appointees in the Bush administration, too, including more than $40,000 spent on a painting of former Attorney General John Ashcroft, records show.

A portrait of former EPA Administrator Stephen Johnson, another Bush appointee, cost about $30,000, according to EPA records.

Like most other agencies, USDA officials wouldn’t say one way or another whether the $22,500 it’s spending to commission a portrait of Mr. Vilsack signals his intent to leave the Obama administration.

“Consistent with previous administrations, the department has commissioned a portrait to be unveiled at some point following Secretary Vilsack’s tenure,” USDA spokesman Justin DeJong wrote in an email to The Times. “USDA solicited bids for the portrait and selected the lowest of five bids.”

In April, Mr. Vilsack hosted the unveiling of a portrait of former Bush USDA Secretary Ed Schaefer, a painting that cost $30,500, while the portrait of another former Bush USDA chief, Michael Johanns, cost $34,425, records show.

Ann Fader, president of Portrait Consultants in Washington, which represents portrait artists, said that because of policy, she could not discuss any specific government commissions. But she said some agencies start the search for an artist long before secretaries leave because paintings can take from eight to 14 months to complete and frame.

“These are done for future generations to see how we live now, and it’s really a tribute as well as part of a person’s legacy,” she said.

“It’s a tremendous privilege to paint a portrait of somebody as accomplished as these people,” she said, adding that agencies have made a “concerted effort to be cost conscious” over the past few years.

Not everyone agrees.

David Williams, president of the Taxpayers Protection Alliance, a watchdog group, questioned whether the government ought to be spending tens of thousands of dollars for oil paintings of Cabinet secretaries often outside the public’s view.

“It’s not like people are going to be lining up for an exhibit, ‘HUD Secretaries Through the Years,’” Mr. Williams said. “And just because it’s a Washington tradition doesn’t mean they have to keep doing it.”

Best Places to Work Deadline is Friday

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What does it take to be a Best Place to Work in Indiana?

Check out these links for just a few reasons why three of our past winners have been selected: Indianapolis-based E-gineering; Fort Wayne-based Brotherhood Mutual Insurance Company; and Merrillville-based Centier Bank.

The deadline to enter the annual Indiana Chamber-led program, which honors the top companies in Indiana according to confidential employee surveys and employer information, is this Friday — November 30. BPTW is open to Hoosier-based companies and organizations with a facility and at least 15 full-time workers in the state. All entrants receive an employee feedback report – a valuable tool that identifies a company’s strengths and weaknesses, according to its employees.

Winning company rankings will be announced at an awards dinner on May 2, 2013 in downtown Indianapolis at the JW Marriott.

Register by going online or by calling the Best Companies Group at (877) 455-2159.

Unexpected Germ Nightmare: The Office

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You might think that because your office is professionally cleaned, dusted and swept regularly that it’s one of the cleanest places you could spend your day (that’s more cleaning than happens in my house, for instance, on a weekly basis…).

But, it’s not. It’s really, really gross.

Ragan Communications has posted an infographic from MASTER Cleaners Ltd, which points to just how dirty our desks, phones, and other work surfaces are – and no, I’m not talking about clutter on your desk, or even the pile of shoes under your desk (shoe graveyard, as I’ve affectionately called mine).

Be prepared: You’ll want to have your anti-bacterial wipes ready.

The dirty details:

  • Office phones have about 25,000 germs per square inch.
  • Cold and flu viruses can survive for up to 18 hours on hard surfaces; and bacteria actually increase by up to 31% per day on surfaces that aren’t regularly disinfected. If you’re sick, this just proves that you should stay at home until you are better.
  • Wash your hands – and then use antibacterial gel when you get back to your desk, because 75% of office tap handles are considered a serious risk for illness transmission.
  • I’ve saved this one for last: office desks have been found to be more than 400 times dirtier than a toilet seat. On average, about 10,000 bacteria reside around the area where your hands rest. Most keyboards contain 70% more bacteria than a toilet seat.

Alright, now that you are thoroughly disgusted, here are a few simple ways you can combat office germs as we head straight into cold and flu season:

  • I’ll say it again: Wash your hands. The same lesson that applied as children still applies now (though, as I witnessed a woman leave a library bathroom without washing her hands the other day, some people still don’t get this simple message).
  • Clean your stuff – disinfecting your phone, desk, door handles and other hard surfaces regularly and often will help keep bacteria at bay.
  • Take an actual lunch break and eat somewhere else – if you must eat in the office, absolutely don’t place the food straight onto the solid surfaces of your desk.
  • Do your coworkers a favor and stay home if you’re ill – there’s just no good excuse to come in to work if you’re infectious.

Of course, you can’t live life in a bubble. Germs and sickness are a part of life; but remember that there are a few easy things you can do to keep yourself and others around you healthy. We’re all in it together!

Noblesville’s RMI Expanding Business, Adding Talent

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Historically, RMI in Noblesville has focused on orthopedic solutions for spinal surgeries, as well as hip and knee replacements. It’s had quite a bit of success in this industry, but RMI leadership now sees an opportunity to expand its focus.

"More recently, we’ve been looking for opportunities for growth in the non-medical field," President James Evans explains. "So we’re in the process of getting our aerospace certification."

Evans relays that expansion is one of the key reasons the company moved to Noblesville from Rochester in fall 2011. He explains the move gave the company more access to talent, and provided a more central location and close proximity to customers. While quite an undertaking, 19 of RMI’s Rochester staffers made the move south with the company, which currently has 25 employees (although that number will grow to 28 in the near future and well beyond once it expands into aerospace).

"We build low volume precision components out of exotic materials for the medical industry," Evans clarifies. "It’s a natural outgrowth opportunity to build products for other markets. Aerospace (and government, high-reliability military and aviation industries) all have requirements for the kind of capability that we have. Fairly high value componentry and assemblies are what we specialize in. In the spinal parts we build, the cervical plates, the hooks, the rods, the screws, which are mainly out of titanium and stainless steel and exotic plastics — we could really apply those to other markets."

Evans adds that the company has worked to evolve from just a component supplier and has expanded into full assemblies, which now comprise 40% to 50% of its business.

"When you start adding components together as part of an assembly, you have all of the interferences and system-level issues that you uncover," he notes. "And frankly, most of our competitors don’t want that hassle — so we look for more of those opportunities and that separates us from the competition."

He adds that the company now focuses on getting products to market faster by increasing engineering staff and adding equipment, which has helped build customer satisfaction and loyalty.

Evans remarks that RMI now serves more second tier developers.

"In 2005, most of our business was with large OEMs (original equipment manufacturers), and we had very little flexibility in defining the manufacturing of these products," he says. "We had little say in product improvements, and now we’re with customers who are competitive with large OEMs; they’re design houses and they’re working with orthopedic groups. … they look to us for manufacturing solutions."

Challenges still face Hoosier companies in the medical device industry.

"With people out of work, they don’t have insurance and put off having surgeries," Evans offers. "People are also doing tigher inventory controls, so purchasing habits have changed and so we don’t get as many large orders as we used to get. And of course Obamacare has had its own set of challenges, as well as the medical device tax — those things will affect the marketplace."

When asked about Indiana’s pipeline of talent for his industry, Evans explains central Indiana provides more access to talent, but he believes the state has room for improvement.

"The people who actually run our machinery, they need to be trained machinists and need to know a lot about metallurgy and inspection processes, and we have to train every one of them that comes in here," he asserts. "So there’s always a talent gap."

Would you like to know more about RMI or its products? Reach out to Evans at jevans@rmi.us.com.

I-69: Open for Business!

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Today was a monumental day in Indiana transportation, with the opening of a portion of the new I-69 highway. Gov. Mitch Daniels and other leaders convened to open the road this morning near Evansville, and Daniels then rode his motorcycle to Washington (Indiana). The Indy Star reports:

Daniels called the new stretch of highway "perfect,” proclaiming it will be a source of jobs and joy for communities along route.

Daniels, joined by federal, state and local officials, this morning opened the first of three new sections of I-69 in Far-Southwestern Indiana with a ribbon-cutting ceremony near Evansville. Rep. Larry Bucshon, R-Ind. , Lt. Gov.-elect Sue Ellspermann, Evansville Mayor Lloyd Winnecke and Norm Bafunno, president of Toyota Indiana were on hand.

Bouchon got to drive highway. He said he was thrilled with it connection the 3rd largest city with central Indiana.

Pike County commissioner Brian Davis also road the route with Daniels’ entourage. He called it both good and strange. Davis said it is great to have the county’s first interstate, but added "it was funny how quick we went through our county."

Daniels headed north to Washington and met with David Graham, a retired Daviess County farmer and longtime advocate for the new I-69 corridor, and Mark Newland, representing his late father, Jim, of the Mid-Continent Highway Coalition, another long-time advocate for the new highway.

The governor’s final stopwill be at a new interchange with U.S. 231 near Crane Division, Naval Surface Warfare Center about 20 miles west of Bloomington. According to INDOT, that stop also will “include special recognition of Indiana basketball legend Bobby Plump and Olympic gold medalist David Boudia.”

The new interstate is slated to open to the public at 6 p.m.

Thanks to Chamber VP Cam Carter for the picture, taken this morning near Evansville.

Economic Energy? Look to Local Leadership

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I read a recent post from the CEO of Gallup, who provided a good reminder that, like politics, ultimate business success is often locally driven. Yes, policies from Washington and state capitals make a big difference — but so does leadership in communities and companies.

A few highlights from Jim Clifton:

Throughout this year’s long election season, I was often asked: “Who will be better for jobs and the economy, President Obama or Governor Romney?” My reply most surely disappointed partisans from both sides: The president of the United States doesn’t make as much difference in terms of creating economic energy as you’d think, according to Gallup data.

In fact, if the president mattered that much, why is it that cities and states have such extreme variation in their local GDP and job growth? Shouldn’t they all go up or down together with each president?

Instead, Austin, Texas, and Nashville, Tenn., are booming, while Albany, N.Y., and Stockton, Calif., are failing. Texas is prospering while California is almost surely going broke. Austin’s jobless rate is around 5%, while the unemployment rate in Stockton is above 13%.

The difference, in my view, is that Austin has deeply caring, highly engaged business, political, and philanthropic leaders with principles, policies, beliefs, and values about human nature that work. They understand how to build a thriving, growing economy — one that welcomes business and entrepreneurship. Albany has the opposite, as I see it: Leaders with principles, policies, values, and beliefs that discourage business and entrepreneurship, if not outright scaring them away.

Cities across the country with great leadership are filled with booming startup companies, and those cities have thriving economies that create authentic, organically grown good jobs. These cities are saving America, while the others are letting the country down.

Great city leadership has never been so needed. Nationally, business startups are currently growing at under 400,000 annually. If this rate doesn’t double soon, in my view, absolutely nothing will fix our current nightmare of joblessness.

Of course good policy for small businesses is better than bad policy, but in my opinion, the estimated 10,000 business, political, and philanthropic leaders of all shapes and sizes who drive the performance of America’s top 100 cities are the most important people in our country right now. 

Two New Legislative Products to Keep You Informed

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Your Indiana Chamber investment provides you with an invaluable daily presence at the Indiana Statehouse. It also offers tools and resources that allow you to stay updated on legislators and Indiana General Assembly activities.

For decades, the Chamber has published the Indiana General Assembly Legislative Directory, which includes legislator biographies, photos, committee assignments and much more. The handbook also provides contact information, including social media profiles, and a map showing where each legislator will be seated in the House and Senate chambers.

In addition to the handbook, the new Indiana Legislative Directory App will provide all of the same information in a mobile format. The interactive version will complement the printed guide, with additional real-time features (committee schedules, bills authored by each legislator and more) and updates available through the app. 

Also new for 2013 is the Legislative District Poster Set. The wall-size, color posters (one each for the House and Senate) will identify all 150 members of the General Assembly and the new districts in which they are serving. With 29 newcomers, 25 in the House and four in the Senate, the posters will be a valuable guide to the Legislature.

"All three products will really help anyone interested in  following the Statehouse and what goes on in our government," offers Glenn Harkness, Indiana Chamber technical marketing director. "There are a lot of new faces, a lot of new assignments, and it’s important to know who’s who and what they will be doing."

The directory handbooks start at $7 (bulk discount pricing is available). Poster sets are $29.97 (which includes tax and shipping) and the mobile app is $19.99. Pre-order or inquire (we’re not yet taking orders for the app, but you can notify our customer service team to request more information) online or by calling Nick at (800) 824-6885. Poster sets are expected to ship in early December with the Legislative Directory and the app available near the beginning of the 2013 session.

Customer Service as Important as Ever

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I was at a marketing conference a couple years ago when a presenter asserted that a company’s top marketers are really its customer service people. I found that to be one of these really simple, yet complicated concepts. We are lucky to have a great customer service team in place here at the Chamber, and they are often the face of our organizations both via phone and at our conferences. Fast Company delved into this notion in a recent interview with Thor Muller of San Francisco-based Get Satisfaction:

1. Re-humanizing consumer interactions

For Muller, it is simply not enough that companies use their tools. "We really want people to change their whole approach to what it means to talk to customers," he explained. "For a long time, maybe a hundred years, we’ve been gradually squeezing the humanity out of our interactions; scripting it, automating it, scaling it." Instead of asking people to take a number, "Companies now have to revolve themselves around individuals." Muller noted, adding that in doing so, "we’re making the world a better place, certainly more human!"

2. Elevating the conversation from transactions to aspirations

While traditional customer service is often about addressing transactional issues like resetting passwords, Muller believes that community-driven customer support can go much further. "Customer communities at their best are really tapping people’s deeper goals, their deeper desires," explained Muller. This requires companies to, "rise above writing help documentation and be more of a good cocktail party host." Muller links this change with the new staff post of Community Manager who is part therapist, part help desk and part cruise director.

3. Reducing the costs of the traditional help desk

For years, companies have sought to drive down support costs with automation and the ironic goal of minimizing human interaction with their call centers. Part of the reason Get Satisfaction has grown so quickly is that it flips this notion on its head, increasing human interaction but decreasing costs by making support more peer-to-peer driven. Noted Muller, "we’ve seen with our communities at scale typically reduce the number of [service] tickets that go to [call center] agents by 75% or so." Muller referred me to case histories for Mint.com and Yola, both of which reduced "repetitive support by two thirds."

4. Extending support beyond your website to Facebook

While most companies recognize the need to engage consumers on social media, only the savviest have begun to offer customer support on platforms like Facebook. For these enlightened marketers, Get Satisfaction offers a Facebook application in two distinct versions, "one for enterprises who have a lot more demand for customization/controls and one for everybody else," noted Muller. Having a support tab on Facebook gives fans one more reason to "Like" a brand and get the information and support required to encourage and enable over-the-top evangelism.

5. Turning customer support into searchable content

Given the fundamental importance of search to customer acquisition, finding ways to improve organic search results (SEO) is a top priority for most businesses. That said, few have recognized that content generated via customer communities can do just that. Explained Muller, "somebody asks how they can use a particular camera to take better pictures, that is then indexed by Google and then next person who searches finds that conversation. Get Satisfaction] is taking something that used to be a cost center, customer service, and turning it into lead generation."

6. Listening builds trust in and of itself

Dell famously solicited customer ideas and ended up producing a Linux based laptop that no one bought. This kind of listening and responding is not the ultimate intent of Get Satisfaction. While community members are encouraged to offer ideas, Muller does not advocate, "design by committee" or conclude that the customer is always right. "Even if [a brand doesn't] build what I want them to build or do what I want them to do, I may be less likely to change to another product because I feel close to them," explained Muller.

7. Integrating customer conversations with your CRM system

Many sophisticated marketers, especially in B2B, rely on well-honed CRM systems to track leads through the funnel. Get Satisfaction allows these companies to take this one step further by connecting the social web with workflow systems, trouble tickets and project management tools. Explained Muller, "Knowing who a customer is, what their buying history is, and what they care about is important to servicing them well." Suddenly a customer complaint becomes "actionable within an organization," given the CRM integration concluded Muller.

8. Measuring C-Sat on both a qualitative and quantitative basis

While some pundits strive to simplify customer satisfaction to one basic metric like Net Promoter, this may not be the ideal approach for your particular business. Having witnessed thousands of customer comments and complaints, Muller encourages clients to take a "more holistic approach" and "measure satisfaction in various ways." Having developed something called a Satisfactometer, that explained Muller, "might be something fun like an emoticon and other times might be something more structured and numeric," Get Satisfaction is delivering both sides of the measurement equation.