Raleigh, N.C., June 9, 2009 – Griff Morris, managing director of utilities business development with FMI, recently discussed the Economic Stimulus and its impact on Utility Construction at the CMAA Leadership Forum in Scottsdale, Ariz.
Griff noted there is $16.8 billion available for utility construction through the Department of Energy, $3.2 billion of which has been allocated to state energy programs. Given this current situation in which regulatory commissions will be seeking help from constituents to compete for the stimulus funds, Griff predicts the following:
“- Stimulus funding will be delayed as new regulations are developed and implemented
“- Delays will take place during the next six to nine months and will be followed by a robust upturn in utility construction spending for traditional projects coupled with a serious upswing in new technologies spending
“- Opportunities abound for utilities and major constructors as well as residential and commercial builders to form new strategic alliances to take advantage of the changing landscape
Specific opportunities exist for utilities:
“- Assist regulators in understanding new rules and designing new regulations to help state public utility commissions compete for federal funds
“- Be positioned to shape regulations to improve their business
Large EPC firms and Contractors:
“- Robust near term business outlook, especially for those who can embrace advanced technologies and forge alliances with utilities to become a “builder-of-choice” for solar and wind generation facilities
Residential/Commercial Builders:
“- Much to be gained in aligning with utilities to partner in conservation initiatives like weatherization, smaller-scale solar power and home energy audits and efficiency improvements
