Message from the President

To Our Stakeholders:

The past year at PG&E has been marked by challenges unprecedented in our more than a century of business, none more visible, or consequential, than the fatal natural gas pipeline explosion in San Bruno in September 2010. Nearly a year later, its impact is still being felt in the community of San Bruno and, without question, throughout PG&E. The families who lost so much that day and the community that was shaken to its foundation continue to be in my thoughts and prayers and, I’m certain, those of the 20,000 men and women of our company.

This tragedy and the lessons still emerging in its aftermath have demanded that we thoroughly reassess many of the ways we operate and embrace sweeping changes—not just in our gas business, but across everything we do. We are in the midst of this transition today.

Looking ahead, our focus will remain on making the necessary changes to turn around PG&E’s safety and operational performance and earn back confidence among customers, policy-makers and our many other stakeholders. Although the goals we’ve set out to accomplish will not be realized overnight, we are making progress. We remain resolute in our commitment to holding ourselves to the highest operational and safety standards.

Among the most important changes now under way is building our senior leadership team for the challenges ahead. The leaders newly hired or assigned to head our gas, electric and I.T. operations together bring to PG&E more than 100 years of experience in the most demanding of environments. Likewise, our incoming chairman and CEO, Tony Earley, who joins the company in September, is one of the industry’s most experienced and accomplished CEOs, with a strong record on electric and gas safety and reliability.

Importantly, the challenges of the past year have only served to sharpen our focus on the need to integrate sustainability considerations more consistently throughout our business. Whether it’s building the safest, most reliable electric and gas infrastructure; integrating new technology to help customers manage their energy use more efficiently; or planning for the low-carbon energy future in California, looking through the lens of sustainability has never been more essential.

You have our commitment that sustainability will continue to play a central role as we chart our course forward, build positive momentum and work to reclaim our place as a model of excellence for our industry, our customers, our employees and our stakeholders. We look forward to sharing progress and reporting on challenges with you as we continue this journey.

Chris Johns

Chris Johns
Pacific Gas and Electric Company


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