|
"Yes, YES! The Bentley, too. Just get me outta here!!" |
We’ve had a lot of fun picking at the bones of the 20
th
century mastodons that stampeded into the tar pits of the Interaction
Age, but we haven’t witnessed one of those big boys going under in real
time … until today.
Xcel Energy is currently in an existential fight with
New Era Colorado—a band of dedicated (if not a little
misleading)
activists who believe they are “on the verge of setting an important
precedent that has national significance and could threaten not just
Xcel Energy but the very core of the business model, and the billions of
dollars in profit that come with it, of the dirty coal energy
industry.”
Considering the
reaction to date from Xcel—and the energy utility industry in general—they may be right.
In 2011, the good people of Boulder Colorado
voted
to wrest control of the power grid from Xcel and make it a locally
owned utility. Xcel fought back by getting an initiative on the 2013
ballot that would scuttle the deal if it were to pass, setting up a
showdown that will have profound repercussions for the utilities
industry if Xcel loses.
(Ever humble, Xcel initially denied having
anything to do with the ballot measure. But after it was revealed that
“the language of the proposed amendment … is identical to language that
was tested by Xcel in an April poll,” Xcel acknowledged its
involvement.)
New Era Colorado got the jump on Xcel with a well-produced
video
that laid out their case for why voters in Boulder Colorado should not
overturn the 2011 election results. The highlight of this video is the
revelation (at 3:35) that there is a
“textbook” published by the
Edison Electric Institute
that Xcel and other utilities are using to fight the growing movement
to localize power supplies. The advice in this “textbook” on how to “nip
the movement in the bud” made it quite obvious that this 11-year-old
manifesto needs updating.
Among the pearls … “develop fact sheets
and other information you can leave behind,” “feature charitable
activities in bill inserts,” and establish a website because
“increasingly, individuals are turning to the Internet for political
information.” (Can it be that it was all
so simple then? Or has time rewritten every line?)
But
it looks like Xcel is going to need more than a textbook and some yard
signs to prevent its business model from unraveling. According to a more
recent report
commissioned by the Edison Electric Institute (January 2013), the
entire industry faces a “cycle of decline [that] has been previously
witnessed in technology disrupted sectors (such as telecommunications)
and other deregulated industries (airlines).”
In other words,
“Like the U.S. Postal Service … utilities will continue to serve the
elderly or the less fortunate, but the rest of the population moves on,”
at least according to
David Crane, CEO of NRG Energy, a wholesale power company based in Princeton, N.J.
As
we’ve learned from Kodak, the Yellow Pages, Twinkies, Newsweek—to name
just a few—it’s a brave new world out there. If you do not adapt, you
will
die. And the bigger you are, the faster you will be swallowed up by the
tar pit. (The Internet does not subscribe to the “too big to fail”
philosophy.)
So learn from the mistakes of the once-masters of our universe. The days of talking
to are over. You now have to communicate
with your
customers partners, honestly and transparently.