Craig Harrison

Mr. Harrison has over 20 years experience serving the energy and utility services industry in management and consulting roles. He worked for the international engineering consulting firm of CH2M Hill upon graduation from Stanford and prior to being awarded his MBA from Harvard University. Joining the PacifiCorp organization, he served in a variety of financial, regulatory, marketing, operational and strategic planning roles. In recent years, he was instrumental in PacifiCorp’s achieving a global presence in mergers & acquisitions. Mr. Harrison is active in formulating winning corporate strategies in light of the restructuring, globalization and convergence trends that are impacting the utility service business. His background is summarized as follows:

Corporate Strategic Planning

• Guided senior-officer global strategy development process leading to pursuit of transformational international deals.

• Implemented a Corporate Competitive Intelligence task group, focused on successful rivals in wholesale energy trading and bidding competitors for global assets.

• Facilitated the Officer team’s annual corporate strategy sessions and critical issue analysis.

• Engaged and directed the contributions of leading strategy and management consulting firms in shaping corporate direction.

• Assessed actions of major oil company interest in sectors of the electric power business and launched partnership discussions.

International Business Development/Mergers & Acquisitions

• Directed PacifiCorp’s business development and bidding activities for assets in Latin America/Brazil.

?-Structured Cooperative business alliances with the leading state-owned power company in Brazil, COPEL in Parana state, and with them created a special purpose company to pursue cooperative business expansion.

?-Forged bidding consortia with multiple North American, European and Latin American interests.

?-Resolved complex political and legal obstacles to bidding in Minas Gerais and Santa Catarina (Brazil) state power company asset privatizations.

-Managed due diligence teams and their investigations that culminated in recommended bidding price ranges. Identified hidden values, operating efficiencies and earnings growth potential from pending sale of public assets that could represent immediate earnings contributions.

• Performed officer-directed investigations of target Western U.S. merger candidates - including investor-owned power generators and distributors, gas distributors, smaller scale and independent domestic generators, along with a number of technology-based new companies in the energy sector.

• Member of the transition team that oversaw the successful operational integration of Utah Power with PacifiCorp in 1989, responsible for Marketing and Customer Service functions.

• Led multi-department strategic fit assessment behind PacifiCorp inititatives in Australia, Turkey, U.K., and the Philippines. Conducted critical issue investigations associated with Powercor, Hazelwood, The Energy Group, Big Rivers and Bakun transactions.

Consulting

Portland General Electric - Pursued options for marketing of coal fly ash from Boardman generating plant. Secured long-term sale contract to Pozzolonic Northwest.

US Army Corps of Engineers, New Orleans District - Managed project team performing cost-benefit analysis of Lake Ponchartrain flood protection plan proposal.

Willamette Industries, Inc. - Supervised launch of manufacturing facility to produce wax saturated corrugated box containers, to permit market entry to lucrative fresh produce packaging market.

City and County of San Francisco - Investigated options, performed financial analysis, and oversaw awarding of contract for the hauling and disposal of municipal waste sludge from newly built treatment systems.

City of Portland, Transportation Department - Performed economic analysis for redevelopment of Powell Boulevard in lieu of proposed construction of environmentally challenged Mount Hood freeway.

Salt Lake City Water Department - Conducted comprehensive pricing study of water services, resolving issues of county vs. city rate disparity, and implementing innovative altitude zone pricing structures that better reflected customer service costs.

• Water and wastewater revenue requirement determination and price structure studies for Sweetwater Authority (San Diego County, California); City of Price (Utah), Wolf Creek and Metzger Water Districts (Oregon), and City of Griffin, (Georgia).

Energy Technology

• Instigated the redirection of the company’s stance on technology. Transitioned from a "passive" industry follower strategy to become an "active" adopter of technology as the basis for achieving sustainable competitive advantage. Organized Technology Committee of company officers and management. Through this group launched, for example, initiatives in distribution automation technology, a plant operation enhancement joint venture with ABB, and investments in utility billing software through a newly acquired developer and provider, ORCOM.

• Identified value in fiber optic investments that led to PacifiCorp’s profitable leasing of underutilized West Coast routes to MCI.

• Secured officer and board funding for energy-technology related venture capital investment. Evaluated five candidate funds and ultimately invested $100M in Nth Power fund, focused on energy and related telecom technologies.

• Managed negotiations with Hughes Electronics division of General Motors for the distributorship rights for their electric vehicle charging technology for seven Western states, including California.

• Managed the technology selection, procurement, installation and monitoring of photovoltaic electric generation installations in Bend, OR; Green River, WY; and Moab, UT.

• Performed the background research for the EnergyWorks partnership between PacifiCorp and Bechtel in developing alternative generation on a global scale, including successful large-scale investments in industrial cogeneration in the two largest brewing operations in Brazil.

Energy Pricing & Regulatory Strategies

• Represented corporate shareholder and customer interests in Bonneville Power Administration rate cases. Secured benefits through adjustments in energy vs. capacity cost allocations, and the equitable implementation of provisions of the Northwest Region Power Act in the face of challenges from other customer group interests.

• Company witness for Cost of Service and Rate Design proceedings before state regulatory bodies in Oregon, Idaho, and Washington.

• Developed testimony in FERC proceedings for the re-licensing of Lewis River hydro facilities, successfully resisting competing proposals for operation from public agencies.

• Company witness and sponsor of Avoided Cost filings under federal PURPA mandates.

• Prepared testimony and performed economic analysis in support of partial cost recovery of investments in terminated nuclear units.

Energy Utility Operations

• "Line" operations manager, directing 230-member staff in marketing, sales and customer service function across a four state (Washington, Idaho, Montana, and Central Oregon) service territory.

• Within one year, accomplished turnaround redirection to create a competitive sales force that prospered in inter-fuel and alternate supplier competition.

??-Boosted measured customer satisfaction to highest national levels.

-Reduced manpower costs by 30% through innovative use of organization-wide employees to assume customer and sales functions as part of their job functions.

-Successfully negotiated long-term supply contracts ($190M in annual revenues) with high-risk industrial accounts in competitive supply situations.

-Grew electric revenues by four times the national average beyond Utah merger-related price reductions provided to customers.

Marketing & Customer Research

Driving force behind bold initiatives that transformed the firm’s marketplace stance from tariff-driven to becoming truly customer-driven.

• Organized the primary industrial revenue base around major accounts. Re-staffed around account relationships. Oversaw preparation of detailed account profiles and instituted officer briefings and ownership of account contacts and critical issues as defined by the customer.

• Identified and promoted leading edge electro-technologies in specific customer applications - ground source heat transfer, mechanical vapor recompression, radio frequency industrial drying. Acquired and developed Waterfurnace brand of ground source heating equipment distribution franchise for the western U.S.

• Conceived and implemented incentive pricing with major accounts to assure sales retention and maximize earnings in the face of likely account loss to cogeneration or public agency incursions.

• Structured company ownership of cogeneration facility at Fort James, Camas, WA paper mill to forestall sales loss, secure a low cost generation resource and provide a lower cost source of process steam to the customer.

• Developed and managed customer market research capability to perform attitudinal tracking, energy decision making analysis, and new product testing. Ranked 1st among 20 leading U.S. utilities for strength and sophistication of Market Research program.

• Researched and implemented profitable programs to address growing power quality challenges.

• Negotiated special sale contracts to displace onsite customer generation units profitably during limited times of seasonal power surplus during "fish flush" of federal hydro system.

Education

MBA, Harvard University, Graduate School of Business Administration

BA, Stanford University, Highest honors in Economics

Recipient of Annual Award for outstanding Honors thesis of the graduating class

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Craig Harrison

Principal Consultant