Working Safely and Staying Healthy

Creating a safe and healthy workplace requires designing and maintaining hazardfree workspaces, developing and implementing safe work processes and investing in the appropriate training and equipment to protect our team members. The Utility's multifaceted Safety and Health Program is designed to achieve these goals. The program ensures that we have a systematic means to identify potentially unsafe or unhealthy situations, evaluate alternatives for corrective action and track our progress in avoiding and remedying these situations.

Serving Customers Over an Area of 70,000 Square Miles, with a Focus on Safety

A new climbing technique requires linemen to use a safety belt while climbing. In the past, linemen would not "belt on" until they reached the point where they would be working.

In 2006, the Utility enhanced its Safety and Health Program in the following ways:

Developed and implemented a new and innovative Safety and Health Management Program, called "Zero-In on Safety," which includes new tools, training and initiatives that are designed to lead the company toward zero injuries.

Restructured the company's Safety and Health organization, leading to a centralized structure that will result in a more effective and consistent approach to incident prevention and management.

Implemented a formal Driver's Training Program for employees, focused on reducing the number of motor vehicle incidents involving the Utility employees.

The Utility's statistical performance improved significantly in 2006. For example, we reduced our OSHA Recordable Rate by 13 percent, compared to 2005, and cut our Lost Workday Case Rate by more than 14 percent. We also realized continued success in reducing the total number of Lost Workdays, ending 2006 with nearly 8 percent fewer Lost Workdays than 2005. The table below provides complete safety statistics for 2004 through 2006. And while we have made progress over the years, we recognize that zero incidents is our ultimate goal, and we are committed to moving aggressively toward achieving it.

A Safe Work Environment Fosters Dedicated Employees and Ensures Reliable Service

Safety Results for 2004 through 2006

	2004	2005	2006
Total Lost Workdays¹	60,766	42,639	39,343
Total Lost Workday Cases²	284	196	177
Total Lost Workday Case Rate³	1.48	1.04	0.89
Total OSHA Recordables⁴	1,365	1,142	1,048
OSHA Recordable Rate⁵	7.09	6.08	5.29

1 Total Lost Workdays is an internal PG&E metric that counts the number of workdays lost due to occupational injury or illness.
2 Total Lost Workday Cases is the number of nonfatal occupational injury and illness cases that (1) satisfy OSHA requirements for recordability, (2) occur in the current year and (3) result in at least one day away from work.
3 The Lost Workday Case Rate measures how frequently new Lost Workday Cases occur for every 200,000 hours worked, or for approximately every 100 employees.
4 Total OSHA Recordables is the number of injuries and illnesses that meet OSHA requirements for recordability, i.e., (1) are work-related, (2) are new cases and (3) meet one or more OSHA general recording criteria.
5 The OSHA Recordable Rate measures how frequently occupational injuries and illnesses occur for every 200,000 hours worked, or for approximately every 100 employees.

In 2007, we plan to provide safety statistics for PG&E Corporation, in addition to the Utility. We also plan to include data benchmarking our safety performance against others in our industry.