today announced new, streamlined management structures and a series of
efficiency measures designed to support the company's ability to
continue to modernize and invest in the safety of its electric and gas
systems while ensuring that its services remain affordable for customers.
"We are reducing support services costs in order to continue to invest
in important safety initiatives and in modernizing our system to meet
our customers' future needs while keeping their bills as low as
possible," said PG&E's Geisha Williams.
In addition to continuing to fund important safety initiatives, Williams
noted that California's clean energy goals call for significant
increases in renewable energy, energy storage and energy efficiency.
PG&E already leads the nation in integration of private rooftop solar < br>
arrays. Integrating these technologies requires an https://www.youtube.com/watch?v=aWoSWNwtVKA increasingly
sophisticated, multi-directional grid.
As previously announced, Williams, who currently serves as President,
Electric, of Pacific Gas and Electric Company, will succeed Tony Earley
as CEO and President of PG&E Corporation on March 1. Earley will
continue to serve as Executive Chair of the Board. Nick Stavropoulos,
currently President, Gas, of Pacific Gas and Electric http://www.ibew.org/ Company, will
become its President and COO on March 1.
PG&E plans to reduce the number of officers by 15 percent, or https://www.youtube.com/watch?v=aWoSWNwtVKA eight
positions, resulting in a flatter, more nimble decision-making structure.
The streamlined manage ment structure is part of a broader plan to reduce
costs in 2017. These projected cost reductions were reflected in PG&E
Corporation's guidance provided during its third-quarter 2016 earnings
call held on Nov. 4, 2016.
The majority of the cost reductions will come from reductions in
spending on materials and contracts, renegotiating terms with vendors,
and reducing expenses for professional services and discretionary
expenses.
In addition, PG&E will eliminate approximately 450 support services jobs
from more than a dozen functional areas across the company. The company
has identified new roles for approximately 60 employees, meaning that
approximately 390 employees will be affected. The company also
eliminated the roles of approximately 800 non-employee contractors from
across the company and will not fill 500 open, non-critical positions.
Over the past four years, the company has increased its workforce by
about 3,000 positions in support of safety and other operational
improvements.
"None of these decisions were made lightly," said Williams. "We greatly
value the contributions of all of our employees, contractors and
vendors, all of whom have made important contributions to the business.
We understand that these decisions create personal hardships. At the
same time, we recognize our responsibility to invest in the future in
order to create value for our customers, our communities and our state."
Organizational Structure Detail
In the new organizational structure, effective March 1, reporting to
Williams will be:
Executive Vice President John Simon, who will take on the role of
general counsel and who will also have responsibility for
environmental matters, regulatory affairs, enterprise records, and
marketing and communications.
Senior Vice President Steve Malnight, who will have responsibility for
strategy; policy; grid integration and innovation; local, state and
federal government affairs; and community relations. He also will have
responsibility for energy procurement, which will continue to be led
by Senior Vice President Fong Wan.
Senior Vice President and CFO Jason Wells, who will expand upon his
existing responsibilities with oversight of enterprise continuous
improvement and project management.
Senior Vice President of Human Resources Dinyar Mistry, and Senior
Vice President and Chief Ethics and Compliance Officer Julie Kane, who
will maintain their existing roles.
Reporting to Stavropoulos will be:
Senior Vice President Pat Hogan, with responsibility for electric
operations and fleet services.
Senior Vice President Jesus Soto, with responsibility for gas
operations and aviation services.
Senior Vice President and Chief Nuclear Officer Ed Halpin, with
responsibility for all generation operations.
Senior Vice President Laurie Giammona, with responsibility for
customer care and corporate real estate.
Senior Vice President Karen Austin, with responsibility for IT and
supply chain.
John Higgins, currently Vice President of Gas Transmission and
Distribution Operations, will be come Vice President of Safety and
Health for Pacific Gas and Electric Company, reporting directly to
Stavropoulos in recognition of the importance of safety. Higgins'
responsibilities will include overseeing the company's Enterprise
Corrective Action Program. Todd Hohn, who joins PG&E from Underwriter
Laboratories, will report to Higgins and serve as Senior Director of
Safety and Health.
"Our customers want electric and gas services that are, above all, safe,
but also affordable, reliable and clean. Our goal is to ensure that
every dollar we spend is helping to deliver against those goals,"
Stavropoulos said.
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 energy companies 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 pge.com/news.
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