Electricity Deregulation When the State of Texas passed legislation to deregulate electricity, we organized a consortium of 19 buildings managed by Hines Management Services and negotiated, on behalf of these properties, with three potential providers. Result – A reduction in electricity costs for these buildings of $18,000,000 over the two-year life of the contract. The portion of this savings directly attributable to the Hines-formed consortium was $3,600,000, a savings that could not have been realized without this collective effort. To put this in perspective, the savings to the operating costs of Williams Company in Williams Tower in Houston was almost $1,500,000, of which $300,000 was the result of the negotiating strength of the Hines-formed consortium. Telecommunications Companies’ Right of Access When the deregulation of the telecommunications industry became a reality, Hines Management Services, as well as other real estate companies, was being deluged with companies demanding building access. Additionally, we were concerned about the Public Utilities Commission (PUC) ruling that these providers would be given access rights, and for no fee paid to the property owner. Hines organized a group of real estate firms to attack this issue. We obtained legal counsel, split the costs among the firms and approached the PUC to express our views. While this issue is not totally resolved, Hines and other local real estate organizations continue to remain advocates for private property rights by working with legislatures and the Public Utility Commission. Result: The various providers have not been given unrestricted access to the properties, and, when they do provide service to a building, they are required to pay a fee to the building. This even includes the incumbent provider, a battle that was difficult and protracted. Broadband Telecommunications When the explosion of broadband Internet access occurred, Hines set up strategic alliances with major real estate companies in the U. S. Our efforts produced deals with two different providers, our owners incurring no out-of-pocket costs to install the service, monthly rent paid by the provider and revenue sharing for the building. When this industry imploded, Hines-managed properties suffered limited financial impact. -back to top-