infrastructure development & needs from a commercial viewpoint chris hendrix general manager,...

Infrastructure Development & Needs

From a Commercial Viewpoint

Chris HendrixGeneral 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

MudslidesStraight Line Winds

Ice Storm

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Tropical Storms

Lightning

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How did Katrina impact our business?

At Wal-Mart:

• ~34,000 Associates

• 5 deaths

• 173 facilities

• 107 damaged/loss

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Disaster Response TeamsTeams Staged on the peripherals of the storm

SecurityAssociate Support

OperationsRestoration

ConstructionEnergySystems

Teams move in once the storm passes.Man

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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

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•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!

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The TWO most important aspects of crisis management:

• PREPARATION

• COMMUNICATION

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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

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Communication:• Websites with real-time outage

information– Displayed in a graphical map format– Outage Cause– Recovery Time Objective

• Access to a Customer Account Manager

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To enable WMT to get energized and to To enable WMT to get energized and to apply resources efficiently it is imperative apply resources efficiently it is imperative that we know the status/plans of the that we know the status/plans of the utilities.utilities.

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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

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