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A  SITE  SELECTION  SPECIAL  FEATURE  FROM  SEPTEMBER 2001
California


Does Corporate America Believe?

    Indeed, these programs show that the state is putting its best foot forward to turn the energy situation around. But are California businesses buying it? According to Larry Kosmont, president and CEO of Los Angeles-based Kosmont Partners (www.Kosmont .com), they are.
      "The reason you're not seeing a 'run-for-the-door' attitude is that business wants to be in California," Kosmont says. "The business community feels confident that the governor and the state will figure out how to make this work. Business knows now that this is probably a temporary condition that will be solved over the next couple of years as new supply comes on board."
      In fact, Kosmont says that the energy crisis has resulted in the development of new public-private partnerships that will put California ahead of the pack in terms of conservation. California is already the second most energy-efficient state in the nation -- 47th in per capita energy use and 49th in per capita electricity use, according to the U.S. Dept. of Energy -- and since the State of the State address, the Davis administration has received commitments to reduce energy demand from 130 local governments and a number of business leaders. Among those are the California Grocers Association, California Retailers Association, Silicon Valley Manufacturing Group, California Manufacturers and Technology Association, California Business Properties Association, the Business Roundtable and the California Chamber of Commerce.
      To show their support for the state's legislative initiatives, Home Depot, Safeway Inc., Hewlett-Packard, Intel Corp., NEC Electronics and Agilent Technologies also agreed to reduce power consumption at their California facilities. Home Depot and Safeway were given special recognition in April for their proactive outreach campaigns, which included partnering with the state and incorporating its "Flex Your Power" conservation initiatives in company advertising campaigns. McDonald's also signed on as a business partner with the state, printing 4 million tray-liners for its 1,100 outlets that provides the state's energy-saving "Flex Your Power" message and practical conservation tips that can be easily implemented at home.
      Kosmont also points to cities like Azusa that have utilities working out individual contracts with users to change their hourly use. "For example, if a bakery used to cook in the early mornings, the utility is incentivizing them to cook later in the evening, and it's working," he adds. "They're figuring out how to make use of their resources around the clock."

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