Utilities executive study.

A report from Platts/Capgemini

With concerns about the environment, infrastructure, workforce management and increasing regulation denying many of them a peaceful night's rest, top North American energy industry executives are increasingly exploring technology as a remedy for their sleeplessness, a recent study by Platts and Capgemini finds.

Completed in early 2008, the Platts and Capgemini study of nearly 100 high-level executives from the North American electric and natural gas industry was crafted to (1) identify and prioritize current industry issues, (2) assess opinions about the future of the energy industry, and (3) measure steps utility companies are taking to prepare for the future. Based on the study data, the key findings are revealed below.

Key Findings

According to respondents, the findings include:

* The top five most critical issues facing the energy industry today are environment, regulation, workforce management, building new infrastructure and dealing with aging infrastructure, as well as utilizing new technology.

* In the next five to 10 years, environmental regulation, the focus on conservation and energy efficiency, and inclusion of renewables in the resource mix will become increasingly important issues.

* Retail competition in the electricity industry has been unsuccessful and is not expected to move forward in its current form.

* Capital expenditures, generation operations, cyber security, transmission operations and governmental/regulatory affairs are areas where the surveyed executives most often said they plan to increase spending over the next two years.

Top Five Industry Issues

Environmental Issues Looming Larger

As the worldwide focus on environmental protection continues to build, the North American energy industry is clearly taking notice. When asked to name the top three challenges facing the industry, the vast majority (77 percent) of the surveyed executives identified the environment--including such issues a global warming, climate change, and emissions/carbon requirements.

More than ever before, energy executives are focused on the environment. In fact, when respondents were asked to compare the industry's focus on the environment in 2007 against that of 2006, 95 percent of the executives said it had increased. This is indicative of the increasingly pressing nature of environmental concerns on today and tomorrow's business.

Onset of Regulation Requirements

Participants of the study most strongly agreed...