Future Trend: Rising Electric Prices

Current and Future Trends:

• An incremental slew of empty commercial buildings in the metro. cities in California
• More home offices and informal business meetings are done at coffee shops (since 1999)
• Sales of hybrid cars are slowly rising
• The government subsidizing the building of a smart energy grid
• Charging the battery of hybrid cars and electric vehicles(ev) at home and at various battery recharging stations
• PG&E is currently installing Smart Meter electric meters at residence areas.
• The coming of cars and other energy devices being fueled by natural gas.

News item

• Nissan and GMC will be launching their electric cars (the Leaf) later this year. Therefore charging the electric battery at home will become a necessity.

Turning Point for the EV

• Gas prices will need to rise to $4 - $5/gallon before another surge in hybrid car sales occurs

Our Strategic Assessment:

• High residence's electric bill in California
• The possible rise of natural gas price

There are more micro trends behind this possibility. With the above list of trends, what type of strategic decisions will you make from this strategic assessment?

We will cover more on this on-coming phenomena in a later post.