Economic Impact
& Assistance
71,600 Jobs in our service area supported by PG&E’s operations
PG&E actively supports economic vitality in the local communities we serve through a variety of investments—in our operations, employees, supply chain and partnerships with economic development organizations and other groups—that help power California’s economy.
Our Approach
Powering the Economy through Our Operations
As part of PG&E’s general operations, every year we invest heavily in upgrades to natural gas pipelines, electric power lines, generation facilities and other key infrastructure. These upgrades create jobs and contribute to California’s prosperity, helping stimulate economic growth while creating a reliable and efficient energy infrastructure that helps keep local businesses competitive.
Partnering Locally
We actively partner with local, regional and statewide economic development organizations in a variety of ways: providing funding to nearly 50 organizations, having employees serve in leadership roles through boards, and organizing local economic forums and training programs.
We also made a total of $23 million in community investments in 2013. These ranged from donations to charitable organizations that assist low-income families with their utility bills, to investments in local job creation and economic development initiatives, and support for civic projects that vitalize local communities.
Providing Assistance to Businesses
PG&E’s economic development team provides one-on-one assistance to current and future commercial customers who are considering competing locations inside or outside California. The team directly supports local efforts to attract and retain companies by conducting rate analyses, leveraging the full array of PG&E’s extensive energy management programs and coordinating site visits.
We also continue to develop new offerings to help businesses grow or maintain jobs in California, such as a new economic development rate for eligible energy-intensive companies.
Helping Customers in Need
PG&E offers many ways for customers to save money by saving energy. We help customers increase energy efficiency through online tools to analyze their energy use and rebates for energy-efficient products. We also assist customers when they experience challenges or unexpected changes in their financial situation.
Contributing to State and Local Revenues
As one of the largest companies operating in California, PG&E is a major contributor to the revenue that state and local governments depend on to fund critical public services. In addition to property taxes, we pay franchise fees to cities and counties for the right to use public streets for our gas and electric facilities.
An independent study showed that PG&E’s general operations support nearly 71,600 jobs and more than $22.2 billion in economic activity in our service area. This study, based on 2012 data, included the market value of the goods and services we provided, our employees and all expenditures related to our general operations, as well as the "ripple effect" these had in the economy.
Economic Development Rate
PG&E now offers a reduced electric rate to eligible customers with high energy loads who are considering locating in California, relocating from California to other states or closing their existing California operations. Eligible companies will receive a 12 percent rate reduction for five years, and companies in cities and counties where the annual unemployment rate is at least 25 percent higher than the state average will receive a 30 percent rate reduction for five years.
2013 Milestones
In 2013, the investments we made to improve our operations and serve our customers contributed to revitalizing the state’s economy. Highlights included:
- Invested in our infrastructure. Capital investments in our system totaled more than $5 billion in 2013, enabling us to further modernize our system and accelerate the progress we have already made toward our long-term goal of being the safest utility in the country.
- Contributed to community vitality. For example, we launched a new Economic Vitality Grant Program to support local workforce development and business incubation.
- Partnered locally for economic development. In partnership with the Governor’s Office and the California Association of Local Economic Development, we hosted five economic development workshops in local communities, among other actions.
- Assisted businesses. We worked with 29 new and existing businesses in 2013 that were looking to locate or expand in our service area. Of these, nine new businesses selected local communities, bringing more than 1,400 new jobs to the region.
Measuring Progress
PG&E’s Economic Impact
Research shows that PG&E supports significant economic activity and jobs in our service area.
| Economic Activity | Jobs Supported | |
|---|---|---|
| General Operations | $22.2 billion | 71,582 |
| Customer Energy Efficiency Programs | $1.1 billion | 7,688 |
| Community Investments | $38.9 million | 419 |
* These impacts represent the economic contributions of PG&E’s general operations, customer energy efficiency programs and community investments program based on 2012 data. They include the utility’s direct economic activities, including the market value of goods and services provided, as well as the multiplier or “ripple” effect of those activities in the service area economy.
| Franchise Fee and Property Tax Payments | |||
|---|---|---|---|
| 2011 | 2012 | 2013 | |
| Franchise Fees | $117,350,692 | $115,935,577 | $119,591,030 |
| Property Tax Payments | $296,005,977 | $314, 534,703 | $316,970,343 |
Looking Ahead
As a utility, we're inextricably tied to the communities we serve, providing us with a strong incentive to invest in California’s long-term success. Currently, PG&E has one of the biggest capital investment programs in the utility industry. We also seek to leverage PG&E’s strengths to build even deeper ties in our communities and deliver more benefits. Toward that goal, we will continue to focus on fostering economic development, finding opportunities through our supply chain and creating opportunities through community investments, particularly to help people living in underserved neighborhoods.
We were honored to receive the Above and Beyond award from the California Association of Local Economic Development for our role in creating workshops across our service area to educate community leaders about what they can do to grow their local economy, create a positive business climate, and retain and create jobs.
PG&E’s Joshua Townsend receives Above and Beyond award from CALED CEO Gurbax Sahota.