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The Daily Oklahoman Made in Oklahoma Column: Power Costs Inc.

Posted on: Tuesday, 27 June 2006, 12:00 CDT

By Jim Stafford, The Daily Oklahoman

Jun. 27--Address: 3550 W. Robinson Suite 200, Norman.

Employees: 50.

Key personnel: Fred Lee, chief executive officer; Buck Feng, chief technology officer; Sandy Ho, chief financial office; Walter Hobbs, Jason Kram and Doug Logan, vice presidents.

Web site: www.powercosts.com.

Products: GenTrader, GenManager, GenPortal -- three software products that make up what the company calls the Generation Supply Management System.

Founded: 1992.

Background: Power Costs Inc. was founded by Fred Lee and Arthur Breipohl, both electrical engineering professors at the University of Oklahoma. The two are leading researchers in the area of power system optimization algorithms, which are mathematical calculations that help electricity generators deliver power more efficiently.

Lee and Breipohl created the company in 1992 to market software applications that could help utility companies improve the operation efficiency of their power systems.

Meanwhile, the electricity market gradually has been deregulated, and power companies are facing increased competition. In response, many power companies are seeking the best tools available to help them manage their systems efficiently.

Power Costs Inc. has capitalized on the opportunity by providing its advanced Generation Supply Management System, said Buck Feng, chief technology officer.

The company's system manages the full spectrum of operations in a power company, from the physical scheduling of power generation to the financial settlement for energy delivered. Power Cost Inc.'s clients include many major utility companies in the nation, such as AEP, OG&E, Progress Energy, TXU, Texas Genco, Sempra, Xcel Energy.

"The company is profitable, free of debt and has been consistently growing at 15 to 20 percent per year," Feng said.

Power Costs Inc. has attracted some of the brightest Oklahoma university graduates by offering them a casual, flexible and challenging working environment, Feng said.

"However, hiring experienced IT professionals from out of state has been difficult as Oklahoma has yet to develop a reputation as a place with abundance of IT jobs," he said.

The company competes with larger, longer established companies in the industry and pursues the role of niche player in the industry, Feng said.

"PCI often charges a much higher price for its systems than its larger competitors do because the PCI systems are better designed, richer in functionalities, and more robust in enterprise applications," Feng said. "PCI will continue to grow as more utility companies are acquiring Generation Supply Management Systems to better manage their operations."

The company hopes to continue growth at a 15 percent to 20 percent annual rate, he said.

"What makes PCI successful is that there is very little management required for its employees," Feng said. "The company culture encourages everyone to take ownership of their work and perform to the best of their abilities."

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Copyright (c) 2006, The Daily Oklahoman

Distributed by Knight Ridder/Tribune Business News.

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NYSE:TGN, NYSE:XEL,

Source: The Daily Oklahoman

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