The coming decade promises to reveal a different utilityindustry than the one today, which already is bursting around theedges from the speed-of-light changes, according to Victor A. Burk,a managing partner in Arthur Andersen’s energy and utilitiesindustry sector. Burk offered what he termed his “megatrends” athis company’s energy symposium this week in Houston.

Convergence, he said, would be the biggest trend, something thatalready has occurred in the gas and electric industries. Next, themerging will occur in the electric and power industries, as morecompanies take advantage of their infrastructures to build outtheir markets.

Also high on Burk’s list is the overwhelming presence ofebusiness and the Internet, which he said has transformed allsectors and led to globalization.

“More companies are going outside of their home countries forthe first time and have to deal with new risks now,” said Burk.With that move internationally comes a more liberal market, hesaid, including restructuring, deregulation, re-regulation andunbundling of services. In these emerging markets, Burk noted thatcompanies would face parallel challenges with “environmentalimperatives.”

Not to be forgotten is the “war for talent,” not only on theexecutive level but also through the ranks. With an aging workforce— most energy executives fit in the 40-something range, Burknoted that companies should know that most former employees are notleaving their companies, but their bosses. “Hiring and retainingtalent is a challenge for all of us.”

Companies also will be placing a renewed focus on value creationinstead of only looking at earnings. Burk said that companies wouldbe able to achieve recognition in the market if they can show astrong share price performance.

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