Will W.Va. Get an Ethane Cracker Plant?

Gov. Earl Ray Tomblin announced this afternoon that a Brazilian petrochemical company, Odebrecht, has chosen a site in Wood County to explore the possible…

Gov. Earl Ray Tomblin announced this afternoon that a Brazilian petrochemical company, Odebrecht, has chosen a site in Wood County to explore the possible location of an ethane cracker plant and three polyethlene plants. 

The governor was disappointed when Shell announced a few years ago it was choosing Pennsylvania over West Virginia for a cracker plant.  And he’s wanted one ever since.

“Literally from the first day of my administration I’ve made it a priority to take advantage of the vast resources of the Marcellus and Utica shale gas reserves to do more than just extract them and ship them out somewhere else but to create manufacturing jobs here in the Mountain State,” Tomblin said at the announcement in Parkersburg.

The complex will be called Ascent, short for  Appalachian Shale Cracker Enterprise.

An official with Odebrecht says the company is moving cautiously. David Peoples said he didn’t want to raise expectations unnecessarily.  But he was frank when he talked about needing a skilled and trained workforce.

“I was talking to the union representatives this morning and we have a lot of jobs,” Peoples said.  “We have over 180,000 employees world wide and here in the United States one of the issues we have is drugs.  And there’s a drug testing policy.  For all of the young or even for the senior citizens like myself you do not get hired if you do not pass the drug testing policy.”       

Ascent’s feasibility will depend on several important variables, including the contracting of long-term ethane supply, as well as financing, regulatory approvals, and appropriate governmental support.

ARC conference seeks to encourage small business growth

Growing entrepreneurship. That was the focus of the Appalachian Regional Commission’s annual conference in Charleston.

Members from the 13 Appalachian states shared their experiences and ideas on how to create an environment that will encourage entrepreneurs to start or grow their businesses into the future, but many agreed it starts with education.

By the federal definition, 97 percent of the businesses located in West Virginia are classified as small businesses with less than 200 employees. Seventy percent have less than 20 employees, which Commerce Secretary Keith Burdette said very telling of West Virginia’s business climate.

“Small business is big business in West Virginia,” Burdette said.

Burdette and his staff joined business owners, non-profits and educators from the ARC member states at the annual conference, which was hosted this year by the only state to fully lie in the region.

This year’s theme addressed building small businesses: “Entrepreneurship: Transforming Appalachia’s Economy.”

“We had practitioners, people who in their own communities work very hard to provide technical assistance, education, capital and incubation services to have a discussion about what it is they do, what works for them and to share those ideas with other parts of Appalachia,” said Earl Gohl, the ARC’s Federal Co-Chair.

The purpose, Gohl said, is to discuss and share ideas centered on how to make Appalachia a viable environment for entrepreneurs.

“In my work, it seems like everyone has a small business they run out of the back of their truck or out of their garage or out of their shed. The challenge we have is to provide the environment for those folks to succeed and for those folks to grow,” he explained.

The conference hosted a number of strategy sessions discussing how to create value chains with local business, how to gain access to capital and start up money, and this session called “Real-World Ready,” focused on embedding entrepreneurial lessons in public and higher education.

“Eight out of every ten students indicates that they want to own a business. Eight out of ten,” said Ron Thomas, Vice President of the National Association for Community College Entrepreneurship, who moderated the session.

“Now, here’s the correlating problem, they want to own their business, they want to be an entrepreneur, but they’ve not taken courses or had support systems at the school in order to help them become an entrepreneur. There’s something wrong with that equation,” he added.

“West Virginia has always been a state of small business people and entrepreneurs and so we know they’ve got the motivation. The issue is how to we give them the skills to be successful,” said Burdette.

Burdette said education is the key, but as others point out, it’s not always that easy.

“We have all these now requirements for students now to be able to graduate, science, math, etc., so you’ve got to get a little creative,” said Thomas.

Thomas said the way to do that is to embed entrepreneurial lessons into courses student already have to take, and start doing it at an early age to grow creative, business minded thinkers from Kindergarten up.

Burdette said that’s something the state is trying to do.

“It’s an essential step. We’re doing more in both public schools and higher education, but we’ve still got a ways to go,” he said.

Statewide programs like Lemonade Day have elementary school students learning how to start their own businesses with lemons, sugar and water, while more focused programs like those on West Virginia University’s Parkersburg campus have classroom teachers calling staff meetings with their students in conference rooms and hosting trade shows where students can show off their products.

Gohl said it’s never too early and it’s never too late to start thinking like an entrepreneur and these types of programs, where students are taking an active part in not just their education, but in their communities, are the key to creating that essential environment to support an entrepreneurial spirit into the future.

“The challenge in developing entrepreneurs in local communities is really about collaboration. Being willing to reach out and partner with folks and organizations that you don’t usually partner with. It’s those collaborations that end up producing real results. What people find out is they can do much more together than when they work by themselves.”

Marlinton mayor says downtown fire devastating for local business

Marlinton Mayor Joe Smith says a fire that destroyed four buildings is devastating for his city.
 
     The Sunday fire displaced several businesses and about a dozen residents. The fire rekindled Monday.
 
     In addition to displacing people, Smith says the fire will have a significant economic impact. He says the city has lost some of its tax base.
 
     He also says that streets in the area, along with other businesses that weren’t affected, can’t be opened until one of the burned buildings is secured. He says the three-story building’s roof caved in and it’s not safe.
 
     The cause of the fire hasn’t been determined. Smith says fire marshals haven’t entered examined the buildings because of safety concerns.
 

State tax revenue slide continues in October

West Virginia’s tax revenue slide is continuing as October’s collections fell about $8 million below estimates.
 
     Deputy revenue secretary Mark Muchow tells media outlets that collections of personal income, consumer sales and business and occupation taxes were all below estimates.
 
     Personal income and consumer sales taxes are the state’s biggest sources of tax revenue.
 
     Natural gas production boosted severance tax collections above estimates. But Muchow says it wasn’t enough to offset the declines.
 
     October’s tax collections totaled about $313.5 million.
 
     Tax collections in September were about $2 million below estimates.
 

ChannelNet founder and Marshall Alumna lays out plan for success

  A Marshall graduate recently visited Huntington to share a story of motivation. The alumna now owns a company that specializes in using technology for marketing campaigns.  

Paula Tompkins spoke to college students and alumni last week at the Marshall University Foundation Hall. The native Huntingtonian and alum of Marshall had a complex, but simple message. To succeed in the business world entrepreneurs have to be persistent, focused and find an idea that’s not already addressed.

“Dive into the deep end of the pool, you’ve just got to go. You’ve got to pull up your socks, you’ve got to write your idea down and you’ve got to take it to as many people as will listen to you,” Tompkins said.

“When I came up with the idea for my company I took it to some of my friends in Silicon Valley and they all told me it’s the dumbest idea they had ever heard of, seriously.”

Tompkins ideas led her from an early career with 3M and General Electric to starting her own business, ChannelNet in 1985. The company is based on using new technologies in sales and marketing ideas.

ChannelNet is based in San Francisco and has worked with companies such as Ford, BMW, IBM, Intel, Macy’s and Coca Cola. ChannelNet started just as the popularity of personal computers was on the rise.  She used those computers and software to create unheard of marketing campaigns. Tompkins said technology is the key and something companies have to stay ahead of.

“Its quicksand, the technology evolves and you have to evolve with it and keep up and it moves at lightning speed, but the concepts and the kinds of things we’re trying to do really has remained the same. The way people used technology then to shop for a car using a PC and a diskette, today they’re doing the same things online,” Tompkins said.

Tompkins said it can be tough to be the leader of a company because the business world is never steady, it’s up and down continuously.

“Ups and downs are absolutely wrenching, you know recession hits the first time and you haven’t been through it, you’ve got all these employees and money is getting tight and you’re worried about whether you’re going to meet the payroll and in 28 years I’ve never missed a payroll,” Tompkins said.

Tompkins said in the world of technology and business, there has to be a marriage. Meaning IT people shouldn’t be the ones selling the products, they need to work with sales people closely.

“It takes all kinds and all disciplines, in my business today its art and creative people and copywriters, sales people, marketing people, I mean there is a whole range of people that come together and it isn’t just all about IT,” Tompkins said.

Aaron Davis is a student in game development and digital forensics. He said her speech inspired him.

“Well one thing that hit me the most was, if you have an idea, the second step drive is something that I need to start incorporating more, that really hit hard and so motivation wise, that’s where a lot of us fall short,” Davis said.

Brandon Slone is an Integrated Science and Technology major. He said he never thought about the fact that entrepreneurs need more than IT knowledge.

“Like she said you have to combine the arts and the IST programs because I’m fairly good with computers, but when it comes to making graphics and some of the things that my sister does I have no clue and what she was showing was a combination of the two,” Slone said.

Tompkins still has family that lives in Huntington. 

W.Va. Public Service Commission hears electric bill concerns

The West Virginia Public Service Commission got an earful from Eastern Panhandle electric customers unhappy with Potomac Edison’s billing practices during a public hearing Wednesday evening and Thursday morning in Shepherdstown, W.Va.

Customers are upset because last winter and spring they received estimated monthly bills that were much higher than normal. In some cases the electric company did estimated readings several months in a row. Delegate Stephen Skinner (D-Jefferson) was among those who spoke during the hearing.

“You can’t expect people to be hit with the kind of bills that they’ve been hit with here and not have problems,” Skinner said. “The folks on fixed incomes, some of whom are here today, can’t deal with these business practices.”

Potomac Edison and Mon Power are supposed to read meters every other month, and can send estimated bills in months when actual readings aren’t taken.

Before the PSC heard comments, Potomac Edison representatives gave a power point explanation for the problem, saying two big storms last year, the derecho and October snowstorm affected the ability to actually read the meters.

Skinner was among those who didn’t buy that explanation.

“What I heard this morning about the reasons for why we’re in the situation that we’re in was excuse, excuse, excuse, excuse,” he said. “And then I heard that there were some issues in need of enhancement. I have yet to hear the real personal responsibility from First Energy and Potomac Edison for the problems in the Eastern Panhandle.”

Several customers who received extraordinarily high bills testified. One was Kevin Bohrer, who is retired from a power company where he worked at a generation plant. Bohrer says the inconsistent billing has been hard on him.

“This is the way I’ve been paying my electric bill now for the last two-to three years: I have to send them an extra $100 or $200 extra every month because I don’t want to get hit with no $500, $600 electric bill like I did one time,” Bohrer said. “I can’t afford that I’m on disability now.”

Some customers described getting multiple bills in a single month, and others expressed concern that the power company doesn’t have good enough documentation to accurately estimate a meter reading. Sharon Wilson offered a solution.

“I think the only way to get a bottom line accurate estimate for everybody is to mandate that for a 12 month consecutive period that the meters get read every month,” Wilson said. “And that to me would give a base line then and would probably make future bills be more accurate.”

Potomac Edison spokesman Todd Myers said the company encourages customers to call when they have a problem so the Potomac Edison can work with them. Several company representatives were on hand to meet with customers during and after the hearing.

Myers said before First Energy bought Allegheny Power, the employees who read meters had other duties, like collections, hook ups and disconnections.

“Now meter readers do nothing but read meters,” he said. “The other responsibilities have been split off.”

“So people say there’s not as many meter readers,” he said. “There may be a little bit less meter readers but they are meter readers who are 100 percent dedicated to reading meters all day long. And we’ve clustered their routes together.”

Potomac Edison representatives were on hand at the hearing to help people find a solution to their individual billing problem. The PSC also took comments from Mon Power customers Thursday night and Friday morning in Fairmont, W.Va.

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