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 Utilities Cry Out for Explainers

 Pacific Gas and Electric Company if is not careful may wind up being known as the utility joke by the bay.

 It has sustained a series of baffling missteps recently, from backing a ballot issue that exploded in its face – to failing to anticipate and head off a seemingly wacky movement out to raise alarms about the health effects of next generation meters.

It may have company in the utility miscommunications sweepstakes.

Public Service Electric and Gas thought its plan to put solar power on light poles would be about as controversial as puppies and Mother’s Day. Wrong.  The New York Times on its front page – where World Wars are announced – declared that the New Jersey utility’s solar efforts were being viewed as “eyesores.”

Which brings us to the realm of PR. Early in my career as a newspaper reporter, I saw a utility CEO use his top PR guy’s hand as an ashtray where he dropped his ash and cigarette butt before heading to a podium to speak.

Utilities better understand that the role of public relations is more than that. With companies like PG&E and PSEG getting in trouble from seemingly innocuous of efforts – like installing meters and tiny solar modules -  it is time for public relations folks of the highest caliber to be placed close to the inner sanctums of utility decision making. Their advice must be sought – and considered.

Boards of directors and executives must do a better job anticipating how a policy will be perceived publicly. When that policy is essential, the energy company early on must develop clear strategies to make sure their intentions and objectives are understood and, hopefully, then embraced.

Jeff Skilling might not be in jail today if that kind of dynamic would have been at work at Enron. David Sokol would be a lot less red-faced and spending less time with lawyers in the weeks and months ahead. And Peter Darbee would have kept his job at the utility by the bay.  

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member photo Marty, I completely agree with you. Although utilities, by the nature of their business model, have historically recognized the need for solid public relations strategies, sometimes we fall short. Rather than being Fireman Bill, we need to think more like Smokey the Bear.

And it's not just utilities. Bill Margaritis, senior vice president-Global Communications and Investor Relations for FedEx and chairman of the Arthur W. Page Society, puts it this way: "The Chief Communications Officer advances the company's business objectives by identifying risks that may catastrophically undermine the trust between it and its stakeholders. This is not 'PR firefighting.' It is fire prevention: advance corrective steps that remove the fuel of misguided action before a spark ignites it."

Note the key phrase "advances the company's business objectives." Too often, companies (and, unfortunately, public relations staffs themselves) think of the public relations function in tactical terms...as the organization that is told what the decision is and then issues a news release or informs employees or posts a blog.

But in the long run, that view shortchanges the company. Because often, the public relations function is the only part of the company that can look across the entire spectrum of potential stakeholders. As a decision maker, that's a view I'd like to have as part of my decision making process.

Of course, there is no free pass. If utility public relations teams want to be viewed as strategic contributors to their company's success, they have to understand what it takes to do that and must earn that "seat at the table." Otherwise, get used to carrying ash trays.
# Posted By Rick White | 5/3/11 8:54 AM | Report This Comment as Foul/Inappropriate
member photo With the San Bruno natural gas pipeline disaster a recent memory and the Erin Brockovich lawsuit a distant one, the smart meters must have seemed like such a small deal for PG&E and such an unlikely source of public concern and consternation. The company was wrong. http://www.bizmology.com/2011/03/29/pges-smart-met...
# Posted By Stuart Hampton | 5/3/11 3:20 PM | Report This Comment as Foul/Inappropriate
member photo Marty --

I agree that ii is essential that PR reps be at the table.

We did expect some community response to our pole attached solar -- even in a state with some of the highest polling support for renewables. With the first 90,000 panels being installed with very minor opposition, we may have let down our guard a bit. But it is important to keep things in perspective. When the Record (a North Jersey newspaper) ran a story that was negative to our program, they received a large amount of mail in support of our program (unsolicited by us). It resulted in 10 letters to editor being published -- 8 in favor, one neutral. They also ran a positive editorial. Likewise, several hundred people commented on the Times story online -- the vast majority in support of our efforts. The strong positive response to both negative stories have actually helped us make our case to elected officials that should not give disproportionate weight to a few vocal residents.

Paul L. Rosengren
# Posted By Paul Rosengren | 5/5/11 8:46 AM | Report This Comment as Foul/Inappropriate
 
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