Fortnightly Magazine - June 1 2003

Retail Power: Double Down or Fold?

Utility retail is at a crossroads. Energy executives must decide which path to follow.


Utility retail is at a crossroads. Energy executives must decide which path to follow.

There are only two routes to creating or maintaining shareholder value in competitive retail electricity marketing: double down to grow the business significantly or fold and divest the business from its portfolio. Utilities and their competitive retail affiliates should determine today which of these two strategic bearings they wish to follow. The tentative middle ground of hold is simply a way to postpone the inevitable and erode shareholder value.

The IT Outsourcing Question

The pros and cons of outsourcing utilities' IT functions.


The pros and cons of outsourcing utilities' IT functions.

Utility companies have a lot to think about these days. Whether or not to outsource information technologies (IT) is part of the equation being calculated in the present economy. While some managers feel anxiety at turning over important company functions to outsiders, others see it as an opportunity to free up IT staff for other work. And keeping up with ever-changing technology is a daunting task.

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