Infrastructure Development & Needs From a Commercial Viewpoint Chris Hendrix General Manager, Texas Retail Energy, LLC Manager of Energy Procurement, Wal-Mart.

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Presentation transcript:

Infrastructure Development & Needs From a Commercial Viewpoint Chris Hendrix General Manager, Texas Retail Energy, LLC Manager of Energy Procurement, Wal-Mart Stores, Inc. LSU -- Rebuilding Utility Infrastructure: Challenges and Opportunities

Severe Winter Weather Flooding Heavy Snow Wildfires Hurricanes Tornadoes Drought Severe Thunderstorm Mudslides Straight Line Winds Ice Storm Setting the Stage Tropical Storms Lightning Infrastructure Development & Needs

Setting the Stage

Infrastructure Development & Needs Setting the Stage

Infrastructure Development & Needs Setting the Stage

Infrastructure Development & Needs

How did Katrina impact our business? At Wal-Mart: ~34,000 Associates 5 deaths 173 facilities 107 damaged/loss Infrastructure Development & Needs Katrina

Managing Business Disruption Infrastructure Development & Needs

Disaster Response Teams Teams Staged on the peripherals of the storm Security Associate Support Operations Restoration Construction Energy Systems Teams move in once the storm passes. Managing Business Disruption Infrastructure Development & Needs

Preparation and Planning Crisis Management Planning Continuity of Operations Planning Critical Infrastructure Identification Disaster Recovery Planning Emergency Procedures & Flipcharts Mitigation Programs Risk and Hazard Assessment Emergency Management at Wal-Mart

Eight Distribution Centers placed in the US with set aside “disaster merchandise” square footage. $4.7 million dollars in “disaster merchandise”. Between 70 and 1050 pallets at each DC. Over 250,000 gallons of water stored. Strategic relationships with key vendors for more. Less than 24 hours on major requests! Support only sent when requested! Disaster Merchandise Support Infrastructure Development & Needs

The TWO most important aspects of crisis management: PREPARATION COMMUNICATION Infrastructure Development & Needs

Preparation: WMT can be used as a resource for mass quantity supply and ship product directly to staging areas but need to work out details before the disaster starts Customer Account Manager keep contact information up to date Infrastructure Development & Needs Preparation

Communication: Websites with real-time outage information –Displayed in a graphical map format –Outage Cause –Recovery Time Objective Access to a Customer Account Manager Infrastructure Development & Needs To enable WMT to get energized and to apply resources efficiently it is imperative that we know the status/plans of the utilities. Communication

Market Approaches: Restructure Louisiana’s Electric Industry (Wholesale & Retail) Electricity Competition will encourage additional generation and transmission Require all LA utilities be a member of a Regional Transmission Organization –NOT an ICT (Independent Coordinator of Transmission) Encourage on-site generation Infrastructure Development & Needs Market Approaches