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PG&E Spends $2.1 Billion With Diverse Suppliers in 2014

03/04/2015

2014 Was Third Consecutive Year of $2 Billion-Plus Spend

SAN FRANCISCO--(BUSINESS WIRE)-- Pacific Gas and Electric Co. (PG&E) today announced that it spent $2.1 billion with diverse suppliers in 2014, accounting for 41 percent of its total procurement. For the third straight year, diverse suppliers accounted for $2 billion-plus of the utility’s spend and more than 40 percent of the utility’s total spend for the second year in a row.

In addition, PG&E surpassed the California Public Utilities Commission’s diverse spending goal of 21.5 percent for the ninth consecutive year, spent more than $1 billion with women business enterprises (WBEs).

“Diversity is one of the cornerstones of PG&E’s success in our mission to provide safe, reliable and affordable energy. We’ve worked diligently for 34 years to build the supplier diversity program. We maintained our spending last year at levels on par with the strongest in our history. We are aiming to do more, through our technical assistance program, to strengthen the competitive profile of small and diverse businesses,” said PG&E President Chris Johns in the 2014 Supplier Diversity Annual Report.

PG&E has been committed to supporting a diverse supply chain for more than three decades. The company has developed one of the leading supplier diversity programs in the energy industry.

PG&E’s dedication to supplier diversity is shown in numerous ways. For more than five years, in addition to maintaining high levels of spend with diverse suppliers, PG&E has focused on elevating the quality of its supplier diversity program by addressing key success factors for suppliers:

  • PG&E was the first utility and one of the initial 26 companies to participate in President Obama’s SupplierPay Pledge, which encourages large corporations to develop ways to assist small business suppliers address financial challenges.
  • In 2014, PG&E introduced “Diverse Suppliers are Cyber-Secure,” a program to raise cybersecurity awareness within the small and diverse business community by highlighting the risks associated with cybercrime, and resources to help mitigate risks.
  • PG&E has actively supported the development of its diverse suppliers through mentorship, scholarships, opportunity identification, and value chain analysis. In addition, PG&E’s formal Supplier Development Program has matched 24 diverse suppliers with PG&E senior executive mentors.
  • In 2012, PG&E was the first utility to add LGBT-owned enterprises, certified by the National Gay and Lesbian Chamber of Commerce (NGLCC), to its supplier diversity program.

PG&E’s Supplier Diversity Department has produced many industry-leading events to support diverse businesses. Some of the most popular have been workshops that provide networking opportunities and useful information to help enterprises compete for PG&E’s business.

On Feb. 23, the utility held a targeted business workshop for African American-owned enterprises. On March 2, PG&E played hosts to the first LGBT Business Builder sponsored by the U.S. Small Business Administration and the NGLCC. Last December, PG&E joined the SBA in convening the second “Boots to Business” workshop for disabled veteran-owned enterprises (DVBE).

PG&E’s diversity programs have received numerous honors (partial list):

PG&E’s Supplier Diversity website contains more information about the program. The site also provides details on how to become a certified diverse supplier.

About PG&E

Pacific Gas and Electric Company, a subsidiary of PG&E Corporation (NYSE:PCG), is one of the largest combined natural gas and electric utilities in the United States. Based in San Francisco, with more than 20,000 employees, the company delivers some of the nation’s cleanest energy to nearly 16 million people in Northern and Central California. For more information, visit www.pge.com/ and www.pge.com/en/about/newsroom/index.page.

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What Diverse Suppliers Are Saying About Working With PG&E

“As part of the PG&E Supplier Development Program, Campos EPC has been given an opportunity to be mentored by PG&E executives and to grow the volume of our services across multiple business units. PG&E has worked diligently to promote Campos EPC to its industry network/partners, as demonstrated by their recent sponsorship of Campos EPC into the National Minority Supplier Development Council (NMSDC) Corporate Plus Program. In addition, PG&E has worked hand-in-hand with Campos EPC to secure our ISO 9001/14001 certification in 2015.”

-- Marco Campos, Managing Principal/Founder, Campos EPC, LLC
Campos EPC was founded in 2005 and is headquartered in Denver with offices in San Ramon, Los Angeles and San Diego. Nearly 33 percent of its employees are based in California. Campos EPC employs a staff of highly-qualified engineering, procurement, and construction professionals specializing in providing services for oil and gas pipeline/facility organizations.

“PG&E is at the forefront of supplier diversity and understands diversity promotes inclusiveness which directly benefits communities and local economies. Through our work with PG&E over the last five years, our revenues have increased three-fold allowing us to employ a culturally diverse staff that mirrors California’s demographics, gain recognition throughout the company and beyond, and launch our own supplier diversity program. PG&E’s Supplier Diversity Program is truly a win-win.”

-- Tracy Craig, President, Craig Communications Inc.
Based in Oakland and Richmond, Craig Communications provides community outreach, education and communication consulting services in support of large, technically complex, multi-stakeholder projects with a focus on risk and reputation management. Founded in 2000, this woman-owned business credits much of its growth to their partnership with PG&E. Craig Communications was also named PG&E’s 2014 Small Business Supplier of the Year.

“PG&E has been incredibly supportive, including us in its supplier diversity program, offering mentoring, education and training to help my business grow and be the best, and safest, supplier possible. Today, PG&E is including Blair, Church & Flynn in competitive opportunities to support land services, power production, corporate real estate and transmission and distribution. I am grateful for their commitment to supplier diversity.”

-- David Mowry, PE, President and CEO, Blair, Church & Flynn Consulting Engineers
Blair, Church & Flynn Consulting Engineers is a Native American-owned professional consulting engineering firm offering comprehensive services including land surveying, planning, engineering, landscape architecture and construction management. Since 1958, the Clovis-based (Central California) firm has been a trusted advisor to their clients throughout the state in supporting the development and operation of their most critical infrastructure and facilities.

Source: Pacific Gas and Electric Company

Pacific Gas and Electric Company

Tony Khing, 415-973-5930

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