Flashback!; Reddy Kilowatt recharged; Old electricity icon returns just in time for energy deregulation
MINNEAPOLIS -- In Spain, he was known as Don Kilovatio. In Brazil, he was Zet Kilowatt, and in Belgium, Le Bon Genie de L'Electricite.
To Americans of a certain age, he's Reddy Kilowatt, the instantly recognizable, flashy little character made of red lightning bolts, a light bulb nose and electrical socket ears.
And now he's back.
Northern States Power Co., the Minneapolis-based electricity provider for five northern Plains states, has fitted Reddy with a new pair of sneakers as it prepares for electricity deregulation.
Reddy was used as a corporate symbol by more than 200 utilities around the world from 1942 to 1973. In Cuba, the cartoon character became so popular that when Fidel Castro nationalized the electric company after the revolution he staged a funeral march down the main street of Havana and buried Reddy.
Reddy appeared in two documentary films about electricity and many television commercials. His image also was used on jewelry, playing cards, pot holders, display figures and other promotional items.
But when demand for electricity began to exceed supply, the need for a strong marketing tool faded and many companies ended their contracts to use Reddy. Northern States Power retired Reddy in 1973 after he carried the company's "Electricity is penny cheap" banner for 30 years.
"They made a blanket assumption that if we don't need to be marketing, then we don't need Reddy," said Ashton Collins Jr., whose father designed Reddy in 1925 while employed at Alabama Power Co. in Birmingham, Ala.
"Now, as competition comes in across the industry, there's a tremendous need for effective brand ID. That's where Reddy comes in for NSP," Collins said.
Utilities are preparing for a time when customers shop for and choose their energy provider based on price, service and reputation.
In the past year, states with high electricity prices have moved rapidly toward deregulation, ending the monopolies local utilities have traditionally had on electricity sales.
Competition statewide or in limited pilot programs already is under way in a few states, including California, Pennsylvania, Massachusetts, New Hampshire, Rhode Island and Illinois. In Minnesota, a legislative task force is studying the pros and cons of deregulation.
Nationwide, Congress has debated electricity deregulation but is not expected to pass legislation this year.
In April, NSP bought exclusive rights to Reddy from Collins Capital Corp. in Albuquerque, N.M., which is headed by Collins, and made Reddy Kilowatt Corp. a wholly owned subsidiary.
"We think Reddy is going to represent us well, especially as the electric industry restructures," said Jim Howard, NSP chairman, president and chief executive officer.
"No matter how much things change, Reddy will reassure customers and shareholders that they can continue to rely on NSP for value and quality."
When NSP purchased Reddy Kilowatt, only a handful of companies still had franchise rights to the character on annual contracts. Those contracts are being honored until they expire. NSP hasn't decided whether it will share Reddy after that.
