Perspectives

Published Article

Now More than Ever: 
The Case for Alliance Partnerships

July 2009

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By Parvez Patel and Robert Zabors

In recent years (now known as ‘the good old days’) as utilities focused on capital projects to meet projected load growth¹, managers of supply chains faced a two-front battle — investing in growth while managing existing assets.

They faced a difficult set of challenges:

  • Increasing supplier power due to labor shortages and consolidation of service & materials providers
  • Rising fuel costs that increase parts and service costs
  • Volatility and increases in commodity prices, as global markets forecasted tight supply and increasing demand, driving up costs for key components in generation, transmission and delivery
  • Aging infrastructure and aging workforce
  • Stricter compliance while facing uncertainties of future regulation and technologies (e.g. Smart Grid)

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