Greg Abel, '84 BCom, started with an affinity for finance. Now he has a direct line to Warren Buffett and is leading development on the largest solar power project in the world.
When Greg Abel began business school at the University of Alberta, he quickly gained an appreciation for numbers. In particular, he gained an appreciation for the numbers that - properly analyzed - give insight into a business's performance.
"I started with a stronger interest in finance," he recalls, "but accounting took over when I came to realize how critically important it was to understand things such as income and cash flow statements."
Today, as chairman, president and CEO of the diversified energy company MidAmerican Energy Holdings, Abel puts what he learned about analyzing numbers to good use. And he has some interesting numbers to look at: 7.1 million, the number of electrical and natural gas customers that MidAmerican serves; 62,700, the number of kilometres of natural gas pipeline it operates; $11.5 billion, the company's annual revenue; and $52 billion, overall assets.
While Abel's success undoubtedly owes much to his attention to numbers, he is far more than a numbers man. Among the many who praise his leadership is iconic American investor Warren Buffett, whose investment company acquired a majority of outstanding MidAmerican shares in 2000. Buffett says he gets many phone calls a day, but he always makes time for Abel. "[He] brings me great ideas, and is truly innovative in his thinking and business approach," wrote Buffett in recommending Abel for an alumni award.
He believes a good leader must make a significant commitment to serve. And, of course, paying attention to numbers never hurts, either.
Abel's path into the energy industry was somewhat circuitous for an Albertan. After graduating from the U of A with his accounting degree, he went to work for Price Waterhouse. He was seconded to the company's San Francisco office, where one of his clients was CalEnergy, a small, independent geothermal power producer. In 1992, CalEnergy hired him and began looking at diversifying into the emerging global energy marketplace. That strategy eventually led to the acquisition of a thriving U.S. regional energy provider and a reorganization as MidAmerican Energy Holdings Co., based in Des Moines, Iowa.
Although the company has grown and diversified greatly - it now includes seven energy-related businesses, as well as the second-largest full-service residential real estate brokerage firm in the United States - Abel hasn't forgotten MidAmerican's roots.
"Renewable energy is still important to us, and we are very focused on developing longer-term, low-cost resources," he says. MidAmerican is the top rate-regulated utility owner of wind-generated power in the United States and has recently started construction on the world's largest solar power development: the Solar Star Project in southern California's Antelope Valley.
Abel's innovation extends to finding novel ways to ensure that MidAmerican companies and employees give back to the communities they serve. He is actively involved in the community, and particularly likes to support causes that develop the leaders of tomorrow.
When he speaks to young people, he encourages them to find their passions. "With that will come a lot of drive," he says.
Abel also advises them that integrity is of paramount importance in good leadership. "It goes beyond how you conduct yourself. It's also about how you communicate. You show respect by bringing a lot of candour to situations."
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