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Infrastructure Development & Needs
From a Commercial Viewpoint
Chris HendrixGeneral Manager, Texas Retail Energy, LLC
Manager of Energy Procurement, Wal-Mart Stores, Inc.
LSU -- Rebuilding Utility Infrastructure: Challenges and Opportunities
Severe Winter Weather
Flooding
Heavy Snow
Wildfires
Hurricanes
Tornadoes
Drought
Severe Thunderstorm
MudslidesStraight Line Winds
Ice Storm
Set
ting
the
Sta
geS
etti
ng th
e S
tage
Tropical Storms
Lightning
Infrastructure Development & NeedsInfrastructure Development & Needs
Infrastructure Development & NeedsInfrastructure Development & NeedsS
etti
ng th
e S
tage
Set
ting
the
Sta
ge
Infrastructure Development & NeedsInfrastructure Development & NeedsS
etti
ng th
e S
tage
Set
ting
the
Sta
ge
Infrastructure Development & NeedsInfrastructure Development & NeedsS
etti
ng th
e S
tage
Set
ting
the
Sta
ge
Set
ting
the
Sta
geS
etti
ng th
e S
tage
Infrastructure Development & NeedsInfrastructure Development & Needs
How did Katrina impact our business?
At Wal-Mart:
• ~34,000 Associates
• 5 deaths
• 173 facilities
• 107 damaged/loss
Infrastructure Development & NeedsInfrastructure Development & NeedsK
atri
naK
atri
na
Man
agin
g B
usin
ess
Man
agin
g B
usin
ess
Dis
rupt
ion
Dis
rupt
ion
Infrastructure Development & NeedsInfrastructure Development & Needs
Disaster Response TeamsTeams Staged on the peripherals of the storm
SecurityAssociate Support
OperationsRestoration
ConstructionEnergySystems
Teams move in once the storm passes.Man
agin
g B
usin
ess
Man
agin
g B
usin
ess
Dis
rupt
ion
Dis
rupt
ion
Infrastructure Development & NeedsInfrastructure Development & Needs
Infrastructure Development & NeedsInfrastructure Development & Needs
Preparation and Planning
• Crisis Management Planning
• Continuity of Operations Planning
• Critical Infrastructure Identification
• Disaster Recovery Planning
• Emergency Procedures & Flipcharts
• Mitigation Programs
• Risk and Hazard Assessment
Em
erge
ncy
Man
agem
ent
Em
erge
ncy
Man
agem
ent
at W
al-M
art
at W
al-M
art
•Eight Distribution Centers placed in the US with set aside “disaster merchandise” square footage.
•$4.7 million dollars in “disaster merchandise”.
•Between 70 and 1050 pallets at each DC.
•Over 250,000 gallons of water stored.
•Strategic relationships with key vendors for more.
•Less than 24 hours on major requests!
Support only sent when requested!
Dis
aste
r M
erch
andi
se
Dis
aste
r M
erch
andi
se
Sup
port
Sup
port
Infrastructure Development & NeedsInfrastructure Development & Needs
The TWO most important aspects of crisis management:
• PREPARATION
• COMMUNICATION
Infrastructure Development & NeedsInfrastructure Development & Needs
Preparation:
• WMT can be used as a resource for mass quantity supply and ship product directly to staging areas but need to work out details before the disaster starts
• Customer Account Manager keep contact information up to date
Infrastructure Development & NeedsInfrastructure Development & NeedsP
repa
rati
onP
repa
rati
on
Communication:• Websites with real-time outage
information– Displayed in a graphical map format– Outage Cause– Recovery Time Objective
• Access to a Customer Account Manager
Infrastructure Development & NeedsInfrastructure Development & Needs
To enable WMT to get energized and to To enable WMT to get energized and to apply resources efficiently it is imperative apply resources efficiently it is imperative that we know the status/plans of the that we know the status/plans of the utilities.utilities.
Com
mun
icat
ion
Com
mun
icat
ion
Market Approaches:• Restructure Louisiana’s Electric
Industry (Wholesale & Retail)• Electricity Competition will encourage
additional generation and transmission• Require all LA utilities be a member of a
Regional Transmission Organization– NOT an ICT (Independent Coordinator of
Transmission)
• Encourage on-site generation
Infrastructure Development & NeedsInfrastructure Development & NeedsM
arke
t App
roac
hes
Mar
ket A
ppro
ache
s