Guys, I think we have the answer to Intel's recent execution problems - Barrett leaves the lights off in his office while working! <ggg>. On a more serious note, some Intel comments on 'California power'...
John
California power crunch changes Intel expansion plans
By Bloomberg News
January 8, 2001, 2:10 p.m. PT
SANTA CLARA, Calif.--Intel CEO Craig Barrett said the company is unlikely to expand in California any time soon because the state's energy crisis has made power supplies unreliable and costly.
"Would I OK the expansion of anything in Silicon Valley right now? Not a chance," Barrett said. "Will I build my new facilities in Oregon and Arizona and New Mexico and Ireland, and even Hudson, Mass., and Israel, where I can get an ensured supply of power? Absolutely, yes, and that's where my expansion is going."
California's move to deregulate energy has backfired, resulting in higher costs while putting the state's two largest utilities on the verge of bankruptcy. Santa Clara, Calif.-based Intel, the state's second-biggest company by market value, risks losing millions of dollars whenever power fluctuates even for a fraction of a second because chips being made can be ruined, Barrett said.
California lawmakers are considering a plan from state treasurer Philip Angelides to sell $10 billion in bonds to purchase the power grid and build power plants. Barrett said he opposes that plan.
"I'm not a great fan of government getting involved in the private sector, especially delivering a key commodity to the private sector," Barrett said in an interview Friday with Bloomberg News at the Consumer Electronics Show in Las Vegas. "It's deregulation gone awry.
"I'd rather see supply and demand get in balance by expediting the permitting process to get more supply built if we have to and increase the grid infrastructure to import more power."
Barrett criticized government officials for blocking proposed construction of new power plants, citing the move by San Jose officials to deny Calpine's bid to build a plant late last year.
"Nuclear power is the only answer, but it's not politically correct," he said.
Intel employs about 10,000 workers in California and has plants in Folsom, Calif., with engineering and other corporate offices in Santa Clara and San Diego.
The energy crisis could ultimately have a broader impact on the state's economy if companies such as Intel seek to add workers elsewhere.
In the meantime, Barrett said he leaves the lights off in his own office during daylight hours, relying instead on sunlight. Intel is seeking to trim energy consumption by 10 percent by taking measures such as dimming lights and turning off air conditioning in offices, Barrett said. |
