Public Power…. Advantages in Community Economic

Development

Greg Fay

General Manager

Clinton Utilities Board

A Little Information about CUB……..

Clinton Tennessee

Clinton, TN

We have………

• 29,000 Electric Customers

• 6,000 Water Customers

• 4,500 Sewer Customers

We have…….

Combined annual revenue in excess of $55,000,000

Question:

What responsibly, if any, does a public power utility have to economic development?

• Local Industrial Development Association (covers most of our service area)

• Regional… 16 contiguous counties

Local/Regional Approach

Local participation is necessary and popular

Regional participation is VITAL

We partnered with our sister utilities and the private sector to combine

our resources and market our region …..

About 5 years ago we formed East Tennessee Economic

Development Agency ……..

We are spending

“huge” amounts of money branding our region

• Regional marketing and business recruitment

• Representing 16 counties in the Knoxville-Oak Ridge Innovation Valley

• Co-located with the State Department of Economic and Community Development and TVA

East Tennessee Economic Development Agency

Positioned for Success

PrivateSupport:Corporate

PublicSupport:Utilities

Local Governments

Prospects

LocalEconomic

Development Organizations

Partners

ECD

TVA

ETEDA

Regional Efforts

Local Economic Developers

• Prospect facilitation

• Buildings and sites database

• Community and demographic data

• Economic development contacts

• Customized information requests

ETEDA Client Services

Target Markets

• Automotive• Distribution• Corporate office / shared services• Electronics & instruments• Medical products & devices• Metalworking, machinery & plastics

Competitive Costs

“East Tennessee provides very competitive business costs, and an excellent workforce with outstanding work ethic”

Carl Parsons – Manager of Manufacturing SupportTRW Fuji Valve

• Proximity - 75% US market

• Cost of living - 8% below US average

• Building costs - 17% below US average

• Electric rates - 6% below US average

• Labor costs - 10% below US average

Accessibility

• At the tri-section of I-40, 75, and 81

• Over 160 daily flights, 16 cities direct

• CSX and Norfolk Southern mainlines

• Barge access via the Tennessee River

“We provide timely service to 75% of the US market from our East Tennessee distribution facility”

Patrick Flanagan - Managing Director of DistributionWyeth-Ayerst Pharmaceuticals

Knoxville – Oak RidgeInnovation Valley

Reliable Energy

• TVA power service 99.999% reliable

• 30,000 MW of generating capacity

• Excess capacity in water, gas, and sewer

“TVA’s reliable generating plants, sound power supply processes, and superior transmission system enable it to provide affordable electricity with the highest reliability rating in the nation.”

Bill Baxter, Chairman of the BoardTennessee Valley Authority

Talented Workforce

• 3,500 PhD's

• 45,000 technical workers

• 75,000 college students

• 500,000 person labor force

• Fastest growing metro region in

Tennessee – high in migration

“We are particularly pleased with the availability of high quality, intelligent and motivated employees”

Bill Rowe – Plant ManagerKimberly Clark

Technology Access

“Very few areas in the US offer the technology infrastructure of this region. Even fewer have a comparable quality of life.”

Dr. Terry Douglass - Former PresidentCTI, Inc. (makers of PET scan technology)

• ORNL and UT

• Advanced materials research

– HTML

– Metals Processing Lab

• Nanotechnology

– Center for Nanophase Materials

• Energy research

Quality Lifestyle

“We located our financial services center here for the pro-business environment and the unmatched quality of life.”

Pamela Murray –Executive Vice PresidentMarriott International - Enterprise Accounting Services

• Spectacular natural beauty

• Twice named America’s most livable city

• National award winning schools

• Low tax burden - low cost of living

• Family oriented environment

Jobs Now: a five-year regional fundraising effort designed to provide additional resources to increase economic growth in the Knoxville Oak Ridge Innovation Valley

Jobs Now!

Jobs Now! Five-Year Goals

• Create 35,000 net new jobs

• Increase capital investment by $2.5B

• Increase per capita income by $5000

(second year-140% above projections)

We have a recipe for success and we are in the kitchen

cooking…

Greg Fay…

Questions?????