technology in New York City and Long Island. Plug Power manufactures a small natural gas fuel cell unit that can be used in homes or small businesses to produce electricity, and to heat and cool in an economical, environmentally sensitive manner. As it becomes more and more difficult to build large power plants, these small fuel cells represent a tremendous marketing opportunity for KeySpan - in product sales, in sales of natural gas and in product maintenance. In the short-term, electric demand will continue to be met by traditional generation technology – including our own assets. Long term, we believe fuel cells are the future for small and large customers alike.
The second is a plan to develop the fiber optic network we own on Long Island, using that network to provide additional products and services to our customers. The fiber network gives us greater access into customer homes and businesses and also has connections to Europe that could present future growth opportunities. We are seeking potential partners who would bring expertise and network breadth to our existing asset, allowing us to develop the fiber network without a significant additional financial investment.
And finally, we are leveraging new technologies and e-business to allow us to use the internet to enhance our ability to interact with our customers, as well as improve our internal operations. We have instituted customer-friendly internet services, such as on-line bill payment, meter reads and service activation/deactivation. We are pursuing an equity position in an exciting joint venture to produce an internet product that allows homeowners to manage their energy and non-energy service needs. KeySpan is also adopting an e-business platform which will significantly reduce purchasing costs while improving the productivity of our purchasing process.
Leading The Change
With the customer base and the right products in place, there is still a final element necessary for success – the right people. I recently announced a new corporate structure that supports our strategic focus and lays the groundwork for integrating Eastern Enterprises. |
KeySpan President and COO Craig Matthews takes a "hands on" look at the gas distribution buisiness. |
It provides focus in our three core businesses, gas, electric and energy services, and ensures efficiencies in both the regulatedand unregulated businesses.
My management team and allthe employees at KeySpan understand that to effectively implement this new strategy, we need to be prepared to move quickly when opportunities arise. We must understand the dynamics of the new market, know our customers and our competition, and combine our knowledge with emerging technologies to deliver value to customers. Through customer value, we will build shareholder value.
The following pages provide greater insight into KeySpan’s direction for 2000. I invite you to take some time to further explore your company’s future.
Finally, I would like to thank our Board of Directors, our shareholders and our employees for supporting KeySpan in this challenging new energy environment. I am confident that with the right strategy, the right execution and the right people, there are no limits.
Robert B. Catell
Chairman and Chief Executive Officer |
