Consumers Energy President and CEO Patti Poppe discussed the immediate actions the company is taking to address the repercussions of the COVID-19 crisis. She also shared her perspective on the potential impacts to the business sector and economy. Poppe engaged in a one-on-one discussion with Sandy K. Baruah, president and CEO of the Detroit Regional Chamber.
Consumers Energy President and CEO Patti Poppe discussed the immediate actions the company is taking to address the repercussions of the COVID-19 crisis. She also shared her perspective on the potential impacts to the business sector and economy. Poppe engaged in a one-on-one discussion with Sandy K. Baruah, president and CEO of the Detroit Regional Chamber.
Good afternoon everyone, and welcome to the latest edition of the Detroit Regional Chamber's Tele Town Hall Series. We are so glad you are with us, but more importantly, we hope you, your family and your fellow team members are healthy and well. Joining us today, I have the great pleasure of welcoming my boss, the chair person of the Detroit regional chamber. But more importantly, the president and CEO of Consumers CMS Energy Patti Poppe. Consumers energy is the largest energy provider utility in the state of Michigan, covering just about every nook and cranny across the state of Michigan. So not only is it the largest utility, she and her team are able to see how this Coronavirus is impacting businesses, families, and communities in every region of this state. So her perspective is going to be hugely important. Patti, welcome and we're so honored to have you today.
Patti Poppe:Oh, thanks Sandy. Great to be with you and congrats to the Chamber and all the great work that you're doing during this unprecedented time.
Sandy Baruah:Well, thank you. The team has done a fabulous job and, uh, we're glad we're able to provide a useful service. These tele town halls have proven to be exceptionally useful. So first of all, Patti, let's check in with the family. Uh, not only do you have, uh, two young women at home who just graduated, uh, but you have an extended family in the Jackson area. How is everybody?
Patti Poppe:Well, uh, we are mostly good. My, all my immediate family here locally is doing well. I did, uh, unfortunately lose my sister on Monday of this week in California. And, uh, so it just goes to show that no one, uh, it just feels like the sadness that in circles this time, uh, nationwide, it's like no one is protected or isolated from it. Uh, it's just a very, very challenging time for so many and my family included.
Sandy Baruah:Oh, I'm so sorry to hear that. I did not know that. Can I ask, did she pass away due to the virus?
Patti Poppe:It does not appear so. She, uh, lived by herself in California though, and it was very unexpected. So we're still awaiting some of the results. It's just a very unprecedented time for everyone. You know, it's, it's so hard to wrap our minds around it and so I think about a week like this where we have Passover and Easter and such a normal, time of, time spent with family and friends that it's all interrupted. Our, our businesses are interrupted, our families, our lives, the normal cycle of life is interrupted. And my heart is just with all of us and I think that kind of hashtag in this together, uh, we're definitely in this together and we'll, we will get through. I keep eyes on the horizon and my heart set on a day when we are post Covid-19.
Sandy Baruah:Well again, we are so sorry for, for your family's loss and it just goes to show that no matter who you are or what you do we are not going to get through this covid-19 situation without all of us being directly impacted in one significant way or another. What about the team at Consumers? Uh, obviously they must be running at 150%. Uh, not only we also had a storm the other night. Uh, how is the team doing?
Patti Poppe:I'm so proud of my team. I have to tell ya, you know, as an essential service, obviously we are fully on the job and the people of Michigan are counting on us from all of our folks who are moved to remote working locations. And I think when a lot of people hear remote working, they think working from their home office and I have a whole host of people doing that, including my entire call center and I'm so proud of my IT team for making that possible and my contact center, customer service representatives, flexibly adapting to that new condition, but also people like our line workers. To your point, we had a storm, a couple storms since all this started and now they're remote reporting from their own homes. Uh, we've got their equipment, uh, accessible. And that was a big logistics shift for us to move people out of our service centers and move them to be able to remotely respond and so a lot of agility being demonstrated by the team. But I think perhaps the part of my team that I am most grateful to our, our folks who are sequestered on site at our power plants, our compressor stations around the state. It might surprise people to think, cause I know people don't think about this, but we want to make sure that we have continual flow obviously of electricity and natural gas to power the hospitals and grocery stores and pharmacies and all our vital services. We need to make sure that we have uninterrupted service of electricity and natural gas. Therefore, our teams are safer onsite than off. Uh, it reduces the variable of, um, exposure to the virus outside of a contained space. And so we have people actually living in campers on site at our facilities, um, and protecting the community as well as their families while they're continuing to serve the people of Michigan and I am so grateful to them for their act of service in this difficult time.
Sandy Baruah:That's quite a sacrifice. They have to be away from their families for literally weeks.
Patti Poppe:Yes, yes and it's just amazing. And without hesitation, we literally were able to activate that in a matter of days. Um, just the logistics of a safe food delivery and a security on the site and enabling 24 hour living there. It's just extraordinary. And the team, but that's the, that's the way our team feels. You know, we are actually prepared for emergencies. We are first responders. We deal with weather events and crises all the time. That's what we're made of. It's what we, uh, actually I think our team is at our best when we're called to do the most and um, and so we could respond fast. We have an incident command structure that's actually been in place, uh, since early March, like March 3rd. We started preparing for it mid February before there even with a crisis yet in the state. Um, and we do our best work in times like this.
Sandy Baruah:Well, our heart goes out to the entire team, but especially those who have to be away from their families to keep the rest of us safe. Patti, I also know that a Consumer's Energy has set up, uh, the call center that you just referred to that is providing direct, uh, advice and assistance to small businesses all across the state. Uh, we have linked to that site while our resource site, but talk about the service that your Consumers colleagues are providing businesses today.
Patti Poppe:Yeah, we have created and just completely pivoted the service that we're offering to business customers because of this crisis and have our contact center and specifically established a business contact center, resource center for urgent relief or of small businesses. So there's a one 800 number to call, which I know you have on your site, but I'll just give it to the folks listening on the phone.(800) 805-0490. This is a hundred percent small business relief contact centers specifically designed to help small businesses navigate all of the resources that are available. Look, it's confusing. Uh, and so working with the folks at Dykema Gossett, we crafted up materials, SBAM, and the small business association of Michigan did a webinar for our contact center agents to train them to be able to help small businesses navigate all the resources that are available. So things like the, uh, payroll protection plan and economic injury disaster loan. We've actually also now added energy coaches, um, because one of the things that we are hearing from small businesses is the three things that are most vital to maintain liquidity and to come out of this crisis are certainly, uh, their cost of their facility if they have a storefront. So any kind of mortgage or loan payment that they're making for their business, uh, also payroll and their utilities. And so we know if we can help them reduce that usage dramatically, that reduces their exposure while we're helping them get access to funds available to help them make those payments or defer those payments. We've've got all sorts of payment options. And so we're just really, really zeroed in on helping small businesses weather this storm. We know small businesses, the heart of Michigan, they're the job creators. Uh, and, and we want to be there for them like they've been there for all Michiganders all these years.
Sandy Baruah:Patty, what about individuals? Your residential customers? Do they contact the same center?
Patti Poppe:No, they contact our traditional center. The 1-800 number for the traditional center is 477-5050. Uh, that's where our normal contact center reps who can help residential customers who are struggling. We've got a variety of options. We've deferred any kind of shutoff for our most vulnerable and our senior citizens through May 3rd, um, and everyone else should and is encouraged to call us. If you need help, if you can see that you've got a problem, we certainly are here to help and we want to make sure that everyone is safe and secure during this time.
Sandy Baruah:Uh, just because I know we're going to get this question, can I ask you to repeat both of those numbers again for our listeners?
Patti Poppe:Oh, you bet. Uh, 800. Well, okay. So the small business line is(800) 805-0490 and our, um, I'm just, I'm actually double checking our 1-800 number 477-5050 is the 1-800 number for our regular contact center.
Sandy Baruah:Okay. It wasn't meant to be a quiz, but thank you.
Patti Poppe:Yeah. You know, I don't actually dial that number myself. Uh, so I just wanted to make sure I had it right.(800) 477-5050 is our regular contact center.
Sandy Baruah:Okay, great. Patty, as I mentioned in the intro, consumers energy touches every corner of this state and online. The rest of us who are sequestered in our kitchens or in our basements, uh, we're not out and about, in the state as we normally are. Can you talk to us a little bit about the impact that you and your consumers colleagues are seeing across Michigan with this a shelter in place order, in full effect?
Patti Poppe:You know, we have a unique seat. Um, we do see families and businesses, as I say, we're actually physically connected to all of these, friends, our friends, our families and our factories. As I like to say with a pipe or a wire, we are connected. And so we can see firsthand the effect that this is having on them, um, through the lens of their energy usage. And, um, I will tell you that the stay home stay safe order is working. Let's start with the health crisis in front of us. It's working. I thought Tina Decker who is the CEO of Spectrum Health. Uh, she made a that um, she published in the last day or so that was just excellent. Thanking people for the actions that they are taking by staying home. It is helping prevent the spread and the speed of the spread so that West Michigan is actually seeing a much less dramatic increase in rate of infection and so I would say that, um, it's working, uh, from the business perspective. However, it's also causing a lot of strain and stress on our small businesses across the state. So, let me just give you a little bit of insight. Uh, you may be aware, my husband and I established a fund in Jackson, uh, and we personally donated$1 million to that fund to help Jackson area businesses just weather this time. And so we really intended it to be like the first 30 days of emergency, small business relief and we established this fund just two weeks ago and in that time we have, uh, awarded$711,000. That's saved 192 businesses for another to fight another day. It doesn't necessarily guarantee them success, but it certainly got them through these 30 days, uh, these next 30 days and that saved approximately a thousand jobs. So now that's great and I feel of course great about that, but what that tells you is the degree of the problem. And every community doesn't have these resources. So the PPP and the economic injury disaster loans, those are awesome resources. And I'm still thankful that the state has been so active in securing that support for our small businesses. They need it. And so I'm seeing it firsthand. Um, you know, we awarded a 192 awards. We had over$2.9 million requested. So I'm just saying that there's a significant economic effect of the state shutdown. I think it's necessary. I'm not definitely not second guessing it. I think it is essential. The health crisis comes first, uh, but the small businesses need support and access to this emergency funding. Um, especially bars and restaurants that often have nine days of cashflow. You know, that, that we saw in our applications in Jackson County, uh, quite directly. So we are, um, uh, uniquely positioned as an energy company. But my husband and I would say are uniquely positioned as we're reading the applications from all these small business owners, these entrepreneurs who are working so hard to keep their dream alive. Uh, I think that's true across the entire state. And the more we can stick together and help people navigate that, the better.
Sandy Baruah:That's an incredible personal commitment that goes far beyond the corporate commitment that you've made on behalf of a consumer's energy. So, uh, we all thank you for that, that level of commitment. Um, the comment that you made about, uh, the folks, uh, or the health officials in West Michigan being grateful for, you know, slowing the spread. So West Michigan is a spared from, you know, perhaps the, the future that might've awaited them that we're seeing here in Southeast Michigan. I know, uh, people, uh, friends of ours, uh, here in our little corner of Southeast Michigan who are purposely choosing not to go up to their vacation homes up North. Uh, just because,'Hey, if I'm asymptomatic and I don't know it, I don't want to walk into a grocery store in, in traverse city and unintentionally you know, infect, someone', and I think that's just really great, a personal commitment from all sorts of people across, across the state.
Patti Poppe:I could not agree more, Sandy. You know, that is the, the point. Every one of us has the ability to protect others. Even if we're asymptomatic. To your point, by staying home, we are not only helping our stealth stay safe, which seems quite natural. Hunker down and be safe, but you're actually helping other people stay safe. And so I fully support the stay home, stay safe order. We've exercised it entirely across our company. Um, uh, as I described these measures we've taken to keep our community and our coworkers safe. It really every one of us has to make that a sacrifice. And sometimes it does feel like a sacrifice to not be able to go out and do what we used to do. But my goodness, it's a small price to pay for the health and wellbeing of our community. And the challenge that the Southeast Michigan community has experienced is so dramatic, so real, so heartbreaking that I hope everyone takes the stay home, stay safe, order very seriously.
Sandy Baruah:Uh, I think for the most part, uh, we are, I hear that Michigan's is getting good grades for, for staying at home. So, so that's, that's good. Let's stay on this economic theme for just a minute. Uh, you are one of our state's fortune 500 CEOs. You've got your finger on the pulse of the national scene as well. Uh, how do you see us coming out of this? Uh, obviously at some point we'll hopefully sooner rather than later we'll be able to go back to work safely. Uh, what do you think that's going to look like for America?
Patti Poppe:Yeah, I think, um, first of all it's, it is interesting to see the, the degree and severity of the issue in our most urban centers given the I would suggest the proximity of people to one another. Um, obviously has a big effect on that. And so I think what is going to be required to safely return to work are two things. People are going to have to one feel psychologically safe that like this, this virus is invisible and that makes it scary and it's hard to know when you are in fact safe. And so I think helping with a good medical advice, standards, practices that are the best recommended, um, advice will help people feel psychologically able to return to work and to return to public gatherings. Once again, I do think a measured return is going to be important starting with workplaces and then starting to expand to other areas of business and congregating capability. The second thing that's going to have to be true to, for the psychological safety to be achieved is actual safe practices that have been employed globally. And so global companies have had great success protecting their workforce by not doing business as usual but putting in significant new hazard mitigation techniques. You know, I think of it like this, look, we drive cars around, right? And there was a time when we used to drive without seat belts cause we didn't know that there was a way to protect ourselves from the hazard in an accident. But now we wear a seat belts. None of us would ever get in a car and not put a seatbelt on. There are new mitigates to the hazard of covid-19 that are required in our workplaces, in our public places that include cleaning cycles, a surface cleaning, not sharing equipment, keeping social distance. All of these measures are going to have to be in place before business can start up again, but we can then start up business safely as they have across the globe. Um, and we can learn a lot from our multinationals here in Michigan who have had that experience, uh, globally.
Sandy Baruah:What are some of those steps? Those companies operating overseas have implemented specifically?
Patti Poppe:Well, the screening before you enter the site is very essential and we're doing that at our power plants. Before we sequestered onsite, we had screening occurring where both asking a series of questions and the temperatures, that's very important once you get in the site, making sure that you have that social distance maintained and established, established and maintained in each of the workstations. And then the, cleaning when a person, when one person is using equipment before anyone else touches or uses that equipment, there has to be a thorough sanitizing of that equipment. Those companies globally who have implemented practices like those and, and several others, standard practices now as how they operate are working safely and they're able to protect their, um, workforce from both becoming infected or infecting another coworker. And so I think there's a lot to be learned from companies like Stryker and Whirlpool and, uh, Steelcase and Hayworth who have these global operations, uh, and have been operating safely globally.
Sandy Baruah:I don't want you to play the role of psychologist or sociologist, but earlier today or late last night, Dr. Fauci from the CDC, uh, suggested that perhaps the tradition of shaking hands is something we should do away with. Uh, do you see kind of social changes occurring in our society as we come out of this?
Patti Poppe:I think it's impossible for people not to change. I mean, because it's invisible. I think we've all have a heightened sense of physical contact. Um, somebody said to me this morning, they're like, you know, I haven't hugged someone in a week and it makes me so sad. I do think human contact is a necessary part of living, but I do think it will be, um, diminished for some time until people feel like probably until they know that there's a vaccine or a, you know, that's readily available. Um, until then I think we'll all be slightly suspicious and slightly cautious, uh, to reach out to someone that we don't actually know. Um, very well. I do think there will be changes and it breaks my heart. Like I, I'm a hugger and I'm really, my kids are who are sequestered here at home with me are getting an over abundance of the hugs because I can't spread the love. And, it really is, I think it's a sad turn, but until we have a vaccine, I think it will be a necessary turn.
Sandy Baruah:Well, it's a little bit like after 9/11, a lot of people were afraid to go up and tall buildings. Uh, they were a little jitterish about a big sounds, skeptical get on airplanes again. Uh, so I think we can see some other manifestation of that kind of skittishness going forward.
Patti Poppe:Yeah. I think those of us, particularly here in Southeast Michigan who are witnessing firsthand this health disaster, this crisis, it's hard not to be changed by it. It's just hard not to be changed by it. And so, um, I, you know, I would be remissed by the way in not sending out a huge shout out to our healthcare workforce. You know, I talk about the sacrifices my team is making and my team is making sacrifices and what should be deemed as a safe environment. Our health care workers and our grocery teams and our delivery workers, they are the front line and, and our last line of defense. And so my love and affection and the, the whole consumer's energy team wants them to know that we've got their backs and we've got you powered and heated. But uh, wow. Thank you to all of them for the sacrifices and the challenge that they are facing on our behalf.
Sandy Baruah:Amen to that. Let me turn it over to my friend and colleague, Brad Williams. The vice president of government affairs for the Detroit regional chamber. Brad, do you have a couple of questions from our audience?
Brad Williams:I do. Thanks Sandy, and thanks Patti for being here today. Um, there's a couple of questions about, you know, what the implications of this are for consumers energy in your business. Um, you've navigated economic disruptions in the past. Uh, you know, particularly you know, with, you know, the customer's having a difficulty making, paying their bills and those sorts of things. But I think this is different, you know, I, I'm consuming more natural gas and electricity at home, but there are a lot of, uh, of your industrial customers who aren't using electricity and natural gas right now, what is the longterm implications of that reality for Consumers Energy?
Patti Poppe:Well, you know, you make a great point, Brad and the, and the folks who turned in the question, uh, residential customers are using more energy because we're all home a lot more than we used to be. And so we've got a lot of programs to help people not have a surprise around that our smart meters allow every customer to know how much more energy they're using and our website has a variety of tools to help you make better choices about that. Um, uh, and we, we have people on the ready and again, our contact center is able to give the initial advice and we've got other tools and tips available to help people use less while they are home and not be surprised by that. Um, I would say the longterm effect, our company's success and wellbeing is inextricably linked to the success and wellbeing of Michigan. We are all about it all the time. That that is our economic home base is Michigan. And so when Michigan is hurting, so are we, the economics of our business certainly are challenged like other businesses. We have a longterm point of view on our ability to serve the people of Michigan. And so we keep our eye on the longterm and we will weather this storm along, all of our customers. Um, and we will be there for the long run. And if there's, um, short term pain associated with that, uh, for our company, it will take a backseat to serving our customers and both our business and residential customers because we know that it's their wellbeing that drives ours. And so, uh, all of you on the phone, your wellbeing comes first and then we'll figure out the back end. Uh, we've been here for 130 years and we'll be here for another 130 more. Um, by thinking that way and thinking and acting longterm.
Brad Williams:I know there were a lot of us who are nervous the other night when we saw the severe storm warning coming through Michigan and the thought, how could this, how could this possibly any more difficult and certainly a power outage would have made this even worse. It's one thing to be stay at home under stay at home order is another thing to do so without without electricity and even God forbid internet. You know, there's a shut off, some shutoff protections right now. Patti, what, what are your philosophies with shutoff protections and you know, if we're at a stay at home or, you know, it sounds like we're going to lengthen the state home order here in about an hour and a half, the governor's gonna lengthen that, you know, how long can, you know, shut off protections be in place before, um, that really starts to have an impact on consumers energy in a dramatic way?
Patti Poppe:Well, I think there's two things. One, uh, again, as we said, the health crisis is real and the stay home stays safe order is necessary. So I support the governor's need to extend it. Um, uh, second I would say that, uh, the shutoff protections are in place so that people can be safe during this time. That's our contribution to the cause, if you will. And, um, we have them in place through May 3rd right now for our low income and senior citizens who are the most vulnerable. We have shut off protections. We have not been initiating shutoff for other customers as well. But we will start communicating with customers at some point. Uh, we haven't yet determined when that is and we'll, we'll certainly be responding to the needs of and the economics of the state. Um, we will return to doing shut off notifications at some point. But first and foremost, we're a supporter of keeping people safe, number one. And I feel like that is where it is important that our focus remains. And so that's, that's our position. Uh, and that's, and we're going to continue to exercise that position for the time being.
Brad Williams:Yeah. I just have one more question for you, Patti. Um, from one of the folks listening in. Do you or are in any, any of the other consumer energy suppliers in the Midwest see any potential issue with the regards to the availability of energy for consumers from, you know, disruption of supply chain, uh, infrastructure issues or human resources? Is there any, is that anything we need to concern ourselves with?
Patti Poppe:Brad, it's a great question and I'm happy to report. There are no concerns on that front. We have an integrated grid across the country, uh, electrons flow where they are required. And because of the actions that my company and my coworkers are taking and my sister and brother utilities across the nation are taking to protect the safety of their workforce. And we have literally weekly calls as an industry nationwide and are directly linked to the department of Homeland security, um, to make sure that we continue and have continuity of service and resources available to continue that service. Uh, we have no issues right now. As I've mentioned before, we are prepared for times of crisis. We are first responders, and so we have massive business continuity plans in place that can be executed as I described in a matter of days or hours in some cases. Uh, we are on the ready on the job and able to continue to serve nationwide.
Brad Williams:So you heard it here, electricity is more reliable than toilet paper.
Patti Poppe:Amen.
Brad Williams:With that there, there's someone in the chat room, Patti, that asked we just share that I share with you how much, your leadership is appreciated during this literal and figurative storm. Uh, and I would echo that as I hand it back to Sandy to wrap things up.
Sandy Baruah:Great. Brad, thank you very much. Uh, Patti, we're coming to the end of our time actually we've exceeded it just a touch but wanting to give you the opportunity for any closing comments.
Patti Poppe:Thank you Sandy. And I guess what I would offer to everyone listening on the line, and especially if you are a small business owner, I just want to remind you that you are not alone and please don't give up. Keep keep fighting. Call our contact center(800) 805-0490 or go to consumersenergy.com. I have a team of people waiting to help you navigate through this maze of resources and support available. Uh, like we have counted on you. You can count on us, your friends at consumer's energy.
Brad Williams:Great.
Sandy Baruah:Patti, thank you so much for being generous with your time today. Thank you for the leadership. You have provided the Detroit regional chamber over the last a few years and going forward and a, but almost more importantly, thank you and thank you to your consumers colleagues for everything that you are doing right now to help businesses, help families, help lead our state during this, during this really unique and frankly, scary time. So, Patti, thank you so very much to our listeners who called in. Thank you for joining us. We look forward to seeing you. Excuse me, hearing you, hearing from you at our next tele town hall. With that, have a good afternoon and everyone please stay safe. Thank you.