Energy is big concern to financial executives, survey says
Energy has become a financial issue to contend with, according to financial executives recently contacted by Alliant Energy Integrated Services.
CEDAR RAPIDS, Iowa, Aug. 27, 2001 — Energy has become a financial issue to contend with, according to financial executives recently contacted by Alliant Energy Integrated Services.
More than 82 percent of executives in the Northeast U.S. who responded to a recent mailing from Alliant Energy Integrated Services said that energy has become an important item in their budgets. For executives who are responsible for managing their company's operating budgets, 96 percent said reducing energy costs is an issue for their business. Eighty-eight percent said managing their budgets is an important energy issue, and 76 percent said they are concerned with mitigating the risk of rising energy prices.
The information was collected from financial executives at manufacturing companies in nine states in the Northeast. The executives responded to a promotional mailing asking about their energy and environmental concerns. More than 750 executives responded to the mailing. The responses reflect similar interest from previous findings in other parts of the country, according to Alliant Energy Integrated Services officials.
In addition to concerns about costs, budgets and price risks, executives also indicated that reliable energy service is a concern. Sixty-one percent of the budget decision-makers said improving energy reliability was an issue for their company. Complying with environmental regulations also was a top concern, identified by 73 percent of the executives responding.
Although not a scientific study, the responses reflect financial managers' growing attention to energy issues, said Chuck Castine, president of Alliant Energy Integrated Services.
"Executives during the past year have seen energy costs affect the profitability of their companies, whether they are small operations or multinational corporations," Castine said. "While energy was once a stable cost, and not an issue to worry about, it has become a major concern to the people who prepare business budgets.
"We are seeing that concern firsthand in the growing number of executives who are asking us for help with reducing their energy costs, managing their energy budgets, and mitigating the risk of rising energy prices. Energy has become a business input to be managed. The good news is that there are tools that can help do just that."
Castine said companies can use services including financial tools such as hedging, energy infrastructure improvements, on-site generation and other services to help address the financial issues related to their energy purchases and use.
Alliant Energy Integrated Services, headquartered in Cedar Rapids, Iowa, is a diversified energy and environmental engineering company of Alliant Energy, based in Madison, Wis. Alliant Energy Integrated Services provides energy consulting, on-site generation and energy infrastructure, energy procurement and environmental engineering and construction management services for commercial, industrial, institutional, educational and government customers. For more information about the company, visit http://www.alliantenergyisco.com.