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 Private Support: Corporate Public Support: Utilities Local Governments Prospects Local Economic 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 Support TRW 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 Distribution Wyeth-Ayerst Pharmaceuticals

Knoxville – Oak Ridge Innovation Valley

Reliable Energy TVA power service % 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 Board Tennessee 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 Manager Kimberly 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 President CTI, 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 President Marriott 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?????