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About the Business

Engaging Stakeholders

100,000+

Number of community members reached through gas and electric safety demonstrations at local community and school events in 2012

Delivering safe, reliable and affordable gas and electric service to our customers is PG&E’s most fundamental business priority. To meet this objective, we understand the critical importance of engaging in a variety of ways with our many stakeholders—listening to them, learning from them, keeping them informed of our progress and problem-solving together for success.

Recognizing the diversity of customers and other stakeholders across our 70,000-mile service area, PG&E has an emerging focus on localizing its presence and strategies in the communities we are privileged to serve. In addition to stepping up our overall engagement with local stakeholders, this also includes formally structuring our organization to work more effectively together at the local level and to better incorporate local needs and concerns into our operating decisions.

Engaging on Corporate Sustainability

Our stakeholder engagement efforts include actively working with Ceres, a leading nonprofit that works with companies to address sustainability challenges. Since 2006, we have invited Ceres to facilitate an annual dialogue with a group of our stakeholders on steps we can take to improve our disclosure and performance and realize our goals going forward. The discussion includes thought leaders from different stakeholder constituencies, such as business customers and suppliers, investors, workforce development experts and environmental and community groups.

In another example of our increased engagement with stakeholders, this year PG&E also embarked on a formal analysis of “material” issues—defined as issues that have the potential to impact PG&E’s long-term sustainability. The assessment relies on extensive interviews with leaders within PG&E and some of our key external stakeholders. When complete it will be an opportunity for PG&E to better understand stakeholder perspectives and integrate them into our ongoing strategic planning.

Regulatory Stakeholder Processes

Like other utilities, PG&E is regulated by numerous federal, state and regional government agencies. Pacific Gas and Electric Company is regulated primarily by the California Public Utilities Commission and the Federal Energy Regulatory Commission, while the Nuclear Regulatory Commission regulates the licensing, operation and decommissioning of our nuclear generation facilities. As a result, we engage in numerous multi-stakeholder public processes convened by these and other regulatory agencies.

For example, in 2012 the CPUC convened a day-long session on corporate sustainability with California’s four investor-owned energy utilities, including PG&E. The session featured presentations by key stakeholder groups and the utilities on the economic, environmental and social dimensions of sustainability. Subsequently, PG&E and the other utilities established a working group that is actively working to identify key sustainability issues, cull best practices, measure progress and communicate the value of corporate sustainability to customers and other stakeholders.

Recent Engagement with Stakeholders

The chart below highlights some of our recent engagement with stakeholder groups. Other examples of ongoing stakeholder engagement include participating in numerous multi-party coalitions and working groups, such as the California Utilities Diversity Council, the California Environmental Dialogue, the Silicon Valley Leadership Group, and various Desert Renewable Energy Conservation Plan stakeholder groups.

Category Selected Examples of Groups Channels of Engagement Recent Examples
Customers and Communities
Business and residential customers
  • 5.2 million electric accounts
  • 4.4 million natural gas accounts
  • Regular quantitative and qualitative customer studies (online, phone, one-on-one, in-person)
  • Customer data and insights to drive our decision-making and help improve our customer service offerings and the way we engage with customers
  • Open houses for the public on key projects
  • Business customer account representatives focused on customer energy solutions
  • 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
  • Staff dedicated to engage in regular dialogue
  • PG&E is forming cross-departmental teams to address local needs in the different divisions within our service area. Customer concerns can be directly addressed by the local employee teams.
  • We also maintain ongoing dialogue with customers through customer advisory groups in different regions of our service area. These advisory groups meet with PG&E executives quarterly and consist of both residential and small and medium business customers and serve an ongoing advisory role to help improve the way we are doing business.
Emergency First Responders
  • Police, firefighters and emergency medical technicians
  • Public safety officials
  • Local public safety team available to engage local stakeholders, raise safety awareness, promote prevention and work with first responders to develop and test emergency response plans
  • Workshops throughout our service area for local emergency agencies
  • Practice drills and training with first responders to simulate emergency response events and prepare for gas and electric-related emergencies
  • Meetings with local governments and agencies
  • Online access to critical PG&E infrastructure information for authorized first responders
  • We are holding workshops throughout our service area for local emergency agencies to increase coordination and planning in the event of a utility-related emergency.
  • We are working with emergency first responders, public safety organizations and local officials to launch task forces in several parts of our service area to raise awareness about the importance of calling 811 before doing any excavation work.
Non-governmental organizations
  • Environmental organizations
  • Community organizations
  • Economic development organizations
  • We maintained a Community Advisory Council, which provides a forum for stakeholders to share feedback and engage in an ongoing dialogue with PG&E about issues of importance to them and the diverse communities they represent.
  • The Council includes local community organizations, businesses and workforce development groups.
Employees
Current, Prospective and Retired Employees
  • Clear vision, values and guiding behaviors for all employees
  • Bi-annual employee engagement survey
  • Awards to recognize employee leadership on diversity, safety, volunteering and the environment
  • Mentoring program
  • Regular briefings, meetings and communication
  • PG&E Academy
  • Active recruiting
  • Monthly newsletter sent to all retirees
  • We continue to respond to the results of our employee survey in a structured way. In 2012, leaders at all levels of PG&E received discrete survey results and developed actionable plans to address the specific needs of their teams.
  • More than 3,000 employees, or about 15 percent of our workforce, participate in at least one Employee Resource Group.
Labor Unions

Approximately two-thirds of our employees are covered by collective bargaining agreements with three labor unions:

  • IBEW, Local 1245
  • ESC/IFPTE, Local 20
  • SEIU, United Service Workers West
  • Labor and management 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
Business Community
Investors

As of December 31, 2012:

  • Approximately 77 percent of PG&E Corporation’s shares were held by institutional investors
  • The top 50 institutional investors owned approximately 63 percent of our stock
  • Quarterly earnings calls and press releases
  • Annual investor conference
  • One-on-one meetings and industry conferences
  • Required disclosures
  • Surveys from socially responsible investors
  • Annual surveys of top institutional investors regarding corporate governance
  • We hosted approximately 10 meetings for investors and analysts at our corporate headquarters.
  • We attended sell-side conferences or met with investors at their offices.
  • We contacted our top institutional investors to engage and discuss any corporate governance matter that may be of interest.
Suppliers
  • Diverse suppliers (women-, minority- and disabled-veteran-owned businesses)
  • Small businesses
  • Large businesses
  • Annual Supplier Conference, which includes supplier awards
  • Supplier Diversity Program with specific spending targets
  • Sustainable 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 exceed our aspirational goal for supplier diversity, we worked with our prime suppliers to identify new opportunities to engage diverse suppliers. This included asking prime contractors to set goals and report subcontracting monthly, detailing their progress toward these goals.
  • We continued our involvement in the Electric Utility Industry Sustainable Supply Chain Alliance and surveyed our top suppliers on their environmental practices.
  • We continued to expand our technical assistance program through “Diverse Suppliers Are Safe,” an initiative focused on enhancing safety within the work environment.