Peace Software entrenches position in the US

By ADAM GIFFORD

Utility billing software specialist Peace Software is on target to meet its aim of $US15 million ($35 million) in revenue this year with the licensing of its Energy system to Texas-based American Electric Power, the second-largest electricity trader in the US.

Chief executive Brian Peace said the sale meant next year's revenues were projected to be $US27 million.

The largest energy retailer in the US, Enron, is trying to build its own billing system, so the American Electric deal was sought-after in the software industry.

As well as servicing American Electric's million-plus customers around Dallas, Peace will also implement the Energy system for the company's Ohio operations, and hopes to also install it in its two British subsidiaries, which have a combined base of 3.5 million customers.

Peace has also licensed the system to Iowa-based MidAmerican Energy, a mid-sized electricity and gas company which is targeting the deregulating energy markets in the Midwest.

"We are now the leading customer-information systems provider for retail energy companies in the US," Mr Peace said. "We are currently winning 85 per cent of the bids for new systems."

Peace's sole remaining New Zealand site is Palmerston North's water-supply company. But it has has field offices in five United States cities, its headquarters in Atlanta, an office in Sydney and its development centre in Auckland, where the bulk of its 300 staff are based.

Mr Peace said that after three years in the US, the company was recognised as a significant part of the industry.

It helped that he paid more than $US100,000 to become the head sponsor at this year's US customer-information conference in Las Vegas in June, which involved shouting 1200 delegates to a performance of the Cirque du Soleil (now setting up in Auckland).

"You can give someone a T-shirt or a pen, and they won't remember you. My theory is, if I give you a great experience, you will remember the person who gave it," Mr Peace said.

The American Electric sale was important because other states were looking to Texas as a deregulation model.

If consumers want to switch power suppliers, the power company must make the switch within three days, or face steep fines.

Mr Peace said it was a model New Zealand could benefit from.

"New Zealand had part of the strategy, but the execution was sadly lacking. To have a competitive, deregulated market, you need market rules with teeth."

Mr Peace said he was still keen to win back business in this country.

The latest release of Energy, Version 6, out this month, includes a new system to help customers forecast energy needs so they can make smarter buying decisions.