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Infrastructure Development & Needs From a Commercial Viewpoint Chris Hendrix

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

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Infrastructure Development & Needs From a Commercial Viewpoint Chris Hendrix

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

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

  3. Infrastructure Development & Needs Setting the Stage

  4. Infrastructure Development & Needs Setting the Stage

  5. Infrastructure Development & Needs Setting the Stage

  6. Infrastructure Development & Needs Setting the Stage

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

  8. Infrastructure Development & Needs Managing Business Disruption

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

  10. 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 HazardAssessment Emergency Management at Wal-Mart

  11. Infrastructure Development & Needs • 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! Disaster Merchandise Support Support only sent when requested!

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

  13. 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 Preparation

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

  15. Infrastructure Development & Needs 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 Market Approaches

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