Aron S. Spencer

A) Corporate Strategic Responses to and Macroeconomic Impacts of the California Electrical Crisis
The electricity crisis in California has imposed tremendous costs on consumers, especially industrial operations. The combination of rising rates and rolling blackouts has significantly raised the cost of doing business. This paper develops different response strategies for each of three types of companies whose operations are affected by the California electrical crisis: an information technology firm requiring ìfive ninesî reliability for operation, a manufacturing firm that incurs large costs to start up and shut down its equipment, and a service firm where operations, communications, and records rely on electronic equipment. Among the strategies considered are cogeneration, small generators, relocation, and negotiating multi-year supply contracts. Each of these strategies offers different costs and benefits to each company, giving an indication of how the crisis may reshape some parts of the California economy. The lessons learned from this experience will impact business and government strategies in the United States and the rest of the world.

B) An Analysis of Superconducting Technology for the Electrical Utility Industry
High-temperature superconductors have the potential to radically change the structure and operation of the electrical industry. In this paper, three superconducting technologies are analyzed for their potential impact on the electrical utility industry. Distributed superconducting magnetic energy storage systems (D-SMES), superconducting cable, and micro-turbines are each described along with their possible uses in the electrical utility industry. Calculation of improved efficiencies, stability, and increased power output from these technolgies show that they could improve operational efficiency of a power system by 5-10%. Based on the electrical improvements, the economic impact of these technologies is then projected, along with a comparison between them and conventional technologies.

C) Technology v. Terror: Balancing Productive and Protective Investments
In the wake of the terrorist attacks of September 11, 2001, public and private invest-ments are being diverted from productive to protective uses. This article examines the possible effects of such a reallocation of resources, and develops a framework for helping firms to determine their exposure to risk and develop an optimal response. The role of technology and technological change is analyzed as a mitigating effect of the negative economic impacts of the attacks.

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