President & Chief Operating Officer of Energy Advantage International
Personal Profile: Glen is married to Sandy with four adult children. He is one of four original employees still with Energy Advantage.

[Newsletter] Tell us a bit about your background and how you got your start in the energy industry 26 years ago.

[Glen] I was born and raised in Peterborough, Ontario. I started my university education at the University of Waterloo in engineering but switched to economics in third year,returning back home to Trent University. I played varsity hockey and, during the summers, professional lacrosse for the Philadelphia Wings of the fledgling National Lacrosse League. The lacrosse league folded after two seasons and I continued my economics education, obtaining a Master’s Degree from McMaster University.

I was always intrigued by the combination of engineering and economics and when I relocated to Alberta in 1980, I jumped at the chance to start working for the Alberta Petroleum Marketing Commission (APMC – an Alberta government crown corporation) as a natural gas analyst. I found that within the energy industry, engineering and economics were often at odds with each other. At the APMC, I became the Manager of Market Analysis & Planning, responsible for analysing and forecasting downstream natural gas markets and prices and monitoring the interest of Alberta producers at regulatory proceedings outside Alberta.

[Newsletter] You were involved in the intergovernmental negotiations that led to the deregulation of the Canadian natural gas market. Can you explain that process and your involvement?

[Glen] The main issue for gas producers in the early 1980’s was access to market, which was blocked by lack of pipeline capacity and a market and regulatory structure, which favoured a few large pipeline marketing affiliates. Further, gas prices were heavily regulated for Canadian and US sales, so selling on the basis of price was not possible. Producers faced a conundrum of having to show surplus supply of 25 to 30 years of available inventory before pipeline capacity could be built and export licences and removal permits granted. Consequently, new drilling and productive capacity was required to support export projects, but production was often shut in for several years.

In the late 1970’s and early 1980’s, the US was deregulating oil and gas markets and, in the face of stiff competition, the Alberta Government was anxious to end the regulated pricing regime. They were also fearful of further attempts of federal government encroachment into the energy industry as evidenced by the National Energy Program. Large industrials and utilities in the consuming provinces wanted access to surplus gas and lower prices, consistent with US competitors. Although our analysis expected a devastating impact on short-term prices, natural gas deregulation was accepted as part of the longer term strategic move to oil and gas deregulation in Canada in the mid 1980’s.

My involvement during the deregulation process was to provide support and analysis for the Alberta negotiating team and to recommend changes required in the market structure. A phase-in period was negotiated for natural gas with government-negotiated fixed price levels and incentive funding programs for utilities established to pass on funding to eligible large gas buyers. Upon deregulation, the rules for granting gas export licences and approvals were greatly relaxed giving producers quicker and improved access to US markets. My department at the APMC became responsible for reviewing and approving short-term export applications and determining eligibility for incentive programs for large buyers in central Canada. In 1986, I left the APMC to move on to an oil and gas marketing company, created specifically in response to the deregulated market.

[Newsletter]You were a founding member of Energy Advantage in 1996. What were your thoughts on joining Energy Advantage and what are the most significant changes you have noticed in the business since then?

[Glen] I was always amazed at how large energy buyers could be influenced by the advice of suppliers. More often than not, buyers bought gas once a year by getting fixed price quotes from their favourite suppliers and comparing these to utility prices. Occasionally they might lock in longer-term prices. Not much thought was given to risk management policies or initiatives. Who needed to worry when prices kept falling and utility prices were easy to beat? However, the market began to change when prices reached bottom and began to escalate, utility prices became more volatile and credit issues surfaced. Small marketing companies were being bought out by larger players or squeezed out of the market by producers. More and more buyers started to rely on professional advisors and agents to help them purchase energy requirements. However, few of these agents went beyond buying natural gas and some were tied to or paid by suppliers. That’s where Energy Advantage’s total energy approach came in.

Energy Advantage’s business has changed in a lot of ways since those early years. Electricity has been deregulated in Ontario and Alberta. We have established and continue to enhance our proprietary energy database and software systems while introducing energy bill payment services. We are currently testing our new Energy Web Portal reporting and information tool, which will be rolled out to participating clients shortly. We have introduced Environmental Management and Demand Response Services. And we have entered the US market and are considering other international markets.

However, I think our biggest change has been in the development and refinement of how we interact with customers through our Total Energy & Environmental Management (TEEM) process. We have spent a lot of time and effort in learning how to effectively implement and manage change within our customers’ organizations and are poised to apply these lessons in the market.

[Newsletter]What is Energy Advantage International all about?

[Glen] We have established a small group of senior managers to guide our objective of becoming an international energy management company. The energy industry has become global in many ways and we need to be proactive in bringing worldwide solutions to our customers. ‘Peak Oil’ issues combined with burgeoning incremental energy demands in developing economies and climate change issues will dominate the future energy agenda. We want to be well positioned to deal with these issues while serving our customers and expanding our business.

[Newsletter]You also have executive responsibilities for US activities. How long has Energy Advantage been working in the US and what types of projects are being conducted here?

[Glen] We established a sales office in Charlotte, North Carolina in June of 2006 and hired Jim Josephson as Vice President of US Sales. Although this is a mature market with lots of competition, we have been modestly successful in taking our independent, total energy management message south of the border. Our customer base is increasing and we are currently adding to our service capabilities in this huge market. Current projects include providing longer-term commodity management and utility bill payment services to a large owner of retirement homes; energy reporting services; and energy efficiency rollouts to three customers at more than 2,000 facilities.

[Newsletter]It’s no longer big news when oil prices hit $100, or more, a barrel but it may well mean the end of relatively cheap energy, which the market has enjoyed for so many years. What impact are rising energy prices going to have on US businesses?

[Glen] Escalating energy prices are going to put greater emphasis on all of our energy management services. Like their Canadian counterparts, no stones should be left unturned by businesses in their quest to lower energy costs. As energy prices increase, the payback for all initiatives also increase, making previously uneconomic projects viable. Care must be taken to continually identify, assess and re-assess all opportunities to reduce energy costs and take advantage of alternative financing and incorporating resulting emission credits, as well as tax and funding incentives available. Of course, changes in technology will play an important role as we get more efficient at utilizing less energy. And with increased prices, it is highly probable that price volatility will also increase, requiring more attention to risk management policies and initiatives. All in all, it’s an extremely daunting task for any energy consumer.

[Newsletter]The US has received significant world criticism for refusing to sign the Kyoto or Bali agreements. However, with the Presidential elections on the way, many are predicting significant changes in terms of how the US approaches its contribution to climate change. How can US businesses best prepare themselves for the effect that a tougher national stance on climate change might have on them?

[Glen] It is often said that emission credits will be the energy currency of the future and it is no secret that environmentally responsible companies are gaining favour with investors. Failure to address this issue is likely be costly, whether this comes in the form of a cap and trade system, mandatory controls, carbon taxes, increased prices for clean energy or reduced share prices. North American businesses need to move beyond thinking about climate change as solely a public relations issue and start implementing strategic solutions into their ongoing affairs. They can start by establishing their baseline greenhouse gas (GHG) footprint and creating awareness within their organization about performance against that baseline. By taking steps to document and reduce their GHG footprint, they can begin to proactively manage their exposure.

[Newsletter]And what can Energy Advantage offer US customers that other industry players cannot?

[Glen] We offer a unique combination, which others do not – an independent, one-stop, total energy and environmental service, provided by a top-notch energy team utilizing proven processes and tools developed in-house.