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Engaging Stakeholders

Proactive engagement with our stakeholders has been and will continue to be an essential part of our approach to sustainability. PG&E engages with our diverse stakeholders to learn from them, inform them and problem-solve with them. For example, our work with Ceres helps us improve aspects of our sustainability commitment related to corporate governance, reporting and planning. We also gained tremendous insights from the stakeholder feedback we received on this report.

We engage with a vast number and diverse array of stakeholder groups including customers, employees, investors, government agencies, non-governmental organizations, suppliers and our labor unions.

As we continue to integrate sustainability into our business, we will continue to look to others, both within and outside our industry, for their insights, assistance and constructive feedback.

For example, we plan to deepen our relationship with Ceres and increase our engagement with external stakeholders on our sustainability initiatives. In the fall of 2010, Ceres will facilitate an in-person stakeholder meeting with our senior leadership and representatives of our key stakeholders. The goal is to engage in a dialogue about where we are today, how we can improve and steps we can take to realize our vision going forward.

The chart below shows highlights of our stakeholder engagement in 2009.

Category	Selected Examples of Groups	Channels of Engagement	Examples from 2009
Business Community
Investors	As of December 31, 2009: Approximately 71 percent of PG&E Corporation’s shares were held by institutional investors The top 50 institutional investors owned approximately 55 percent of our stock	Quarterly earnings calls Annual investor conference One-on-one meetings and industry conferences Required disclosures Surveys from socially responsible investors	We engaged approximately 100 of the top industry analysts and investors at our annual investor conference. We hosted approximately 30 meetings for investors and analysts at our corporate headquarters. We attended sell-side conferences or met with investors at their offices.
Suppliers	Diverse suppliers (women-, minority- and disabled-veteran-owned businesses) enterprises Small businesses Large businesses	Annual Supplier Conference, which includes supplier awards Supplier Diversity Program with specific spending targets Green Supply Chain Program Facilitating supplier-to-supplier mentoring relationships Engagement with ethnic chambers of commerce, veteran business organizations and other groups to reach diverse suppliers	To reduce the environmental impact of our supply chain, we continued to participate in the Electric Utility Industry Sustainable Supply Chain Alliance (Alliance)—sharing best practices with other large investor-owned electric utilities and working with industry suppliers and other stakeholders. Last year, we led an Alliance team that developed recommendations to reduce the overall life cycle impact of wood utility poles. The Alliance is a 501(c)6 non-profit organization with investor-owned utilities as members.
Customers and Communities
Business and residential customers	5.1 million electric accounts (4.5 million residential and 600,000 commercial, industrial and other) 4.3 million natural gas accounts (4.1 million residential and 200,000 commercial and industrial)	Use of customer data and insights to drive our decision-making and help simplify our customer service offerings and the way we engage with customers Regular customer surveys Business customer account representatives focused on integrated demand side management Gas service representatives Customer call centers, local offices and helplines Financial assistance programs for low-income customers Online tools to help customers see how and when they use energy	PG&E continued to engage with the ClimateSmart External Advisory Group (EAG), made up of respected community, environmental, business and government leaders, who provide expert guidance to the ClimateSmart program through quarterly meetings. The ClimateSmart program is a voluntary, tax-deductible program that allows customers to offset the greenhouse gas emissions from the energy they use.
Non-governmental organizations	Environmental organizations Community organizations	Active participation of officers and other employees on non-profit boards Support for community programs through charitable contributions Employee volunteer program Meetings, conferences and community events	We continued to honor our commitment to improve our environmental and social performance by working with Ceres, a national network of investors, environmental organizations and other public interest groups working with companies and investors to address sustainability challenges. PG&E collaborated with Ceres and its stakeholder team to improve our reporting on our sustainability performance and key impacts, including goals, targets, issues and initiatives.
Employees
Current and Prospective Employees	Employee Resource Groups (ERGs) MBA Leadership Program PowerPathway™ Program	Clear vision, values and guiding behaviors for all employees Annual employee satisfaction survey Awards to recognize employee leadership on diversity, safety, volunteering and the environment Mentoring program Regular briefings, meetings and communication PG&E Learning Academy Active recruiting	ERG employee leaders meet regularly with senior management, bringing important issues to the leaders of the company. Each ERG is sponsored by a company officer. The ERGs help employees develop their careers, gain leadership skills and get involved in the community.
Labor Unions	Approximately 65 percent of our employees are covered by collective bargaining agreements with three labor unions: IBEW, Local 1245 ESC/IFPTE, Local 20 SEIU, Local 24/7	Joint learning sessions on key topics Co-hosted sessions on the importance of employee and public safety Labor and management joint engagement to simplify business processes	We held numerous meetings where the company and our unions learned about key health care issues together from third-party experts. We then reached a major agreement that provides a new cost structure for active IBEW, ESC and SEIU-represented employees that gives current employees additional medical plan choices and also addresses retiree medical benefits.
Government
Federal	U.S. House of Representatives and Senate Federal Energy Regulatory Commission U.S. Environmental Protection Agency Nuclear Regulatory Commission U.S. Fish and Wildlife Service	Industry associations Non-profit/business coalitions Staff dedicated to engage in regular dialogue Regulatory proceedings	We played a leadership role in developing the U.S. Climate Action Partnership's (USCAP) detailed policy recommendations for a national, market-based approach to reduce greenhouse gas emissions. USCAP is a group of businesses and leading environmental organizations encouraging the federal government to enact climate and energy legislation.
State	California Legislature California Public Utilities Commission California Energy Commission California Air Resources Board California Department of Fish and Game	Industry associations Staff dedicated to engage in regular dialogue Regulatory proceedings	We engage in public regulatory proceedings at the CPUC and CEC. These proceedings provide an opportunity for multiple stakeholders to provide input to our regulators on PG&E’s “license to operate.”
Local	49 counties and 244 cities Local elected officials	Staff dedicated to engage in regular dialogue Local chambers of commerce Community Advisory Groups (CAG)	We interacted with about a dozen CAGs, comprised of members of the community and designed to serve as a forum for feedback and input.