PCCA Journal|4
th
Quarter 2012
13
T
he improvement of U.S. economic condition is
a function of a chain of interrelated perception
and action. Improving perceptions create will-
ingness to invest, investment creates demand
for goods and services, demand creates short-
ages of supply and rising prices, shortages and rising prices
create a sense of urgency, a sense of urgency creates a com-
pounding effect of improving perceptions, and the cycle starts
again. This cycle hinges upon perception and investment, or
said another way, a willingness to take risk. In the case of the
utility industry, this willingness to take risk falls upon utility
leadership and entrepreneurs—if they demonstrate the cour-
age necessary to tread this path. In the following pages, we
explore the overhead and underground utility industry seg-
ments and the ways that utility leadership and entrepreneurs
can pass this test of courage in 2013.
U.S. utility infrastructure is our greatest challenge and op-
portunity. Utility leadership and entrepreneurs will need the
courage to face these challenges and exploit the opportuni-
ties. The courage to make infrastructure investment by utility
leadership, along with entrepreneurial ingenuity, is required
to navigate our volatile utility environment. The volatility is
due to vast new finds of shale gas and oil, growth in natural
gas as both a fuel for power generation and support for inter-
mittent renewable power, and communications bandwidth to
better connect indi-
viduals and organiza-
tions as well as control
infrastructure. In Exhibit
1, forecasted growth
is volatile and unbal-
anced. During 2013, the
19 percent growth is
almost entirely related
to one segment, electric
and gas transmission
or distribution. Beyond
2012, growth slows dra-
matically reflecting the
overall slow economic
expansion.
2013 Utility Outlook
Courage can be defined as the mastery of fear, not the ab-
sence of it. What do utility leaders and entrepreneurs have
to fear? Aging infrastructure, political turmoil, inflation, un-
employment, financial collapse, state and municipal budget
woes, the deficit, the debt, and the list goes on. Mastery of
these fears is the responsibility, no, the necessity of these
leaders—if they demonstrate the courage necessary to tread
this path.
Since the beginning of the economic crisis in late 2008,
there has been a focus on the poor economy and the many
challenges facing the utility industry, including regulation,
slow economic growth, funding issues, and the like. At the
same time, the domestic oil and gas industry has undergone
a revolution and is bringing together the power and commu-
nication utilities in unique ways. Some of the transformations
initiated by increased shale oil and gas supply include the
most dramatic drop in U.S. oil imports in 45 years; reduc-
tion in the percentage of coal-fired power generation to a
level not seen since World War II; reduction in CO
2
emission
to pre-1992 levels, support of intermittent renewable power
sources like wind and solar, and generating manufacturing
investment and resurgence in the face of the worst economic
downturn and slowest economic recovery experienced since
the Great Depression; and the list goes on. The most dynamic
Profiles in Courage:
The 2013 Overhead & Underground Utility Construction Outlook
By Mark Bridgers and Nate Scott
Continued on page 14
Exhibit 1
Electric/Gas T&D and Telecom Construction Put in Place Historical Figures and Forecasts
Millions of current dollars
1...,3,4,5,6,7,8,9,10,11,12 14,15,16,17,18,19,20,21,22,23,...68