PG&E's Leadership Supported By Regulation

Published: 21 January 2011

8 pages, 4 figures

Executive Summary

This case study is one in a series of Verdantix reports that analyses corporate sustainability strategies. Pacific Gas and Electric Company (PG&E) is a Californian utility, providing energy to approximately 9.4 million people and generating revenue of $13.4 billion in 2009. Under Californian regulation PG&E can only collect revenues authorized by the California Public Utilities Commission (CPUC) to cover costs and provide a ‘fair’ return to investors. In this sense PG&E’s revenues are ‘decoupled’ from its energy sales. The utility targets recognition as a sustainability leader, and appointed a CSO in 2009. Many of PG&E’s sustainability initiatives are driven by regulation, such as investing in customer energy efficiency and developing and sourcing renewable energy supplies. PG&E, supported by Californian regulation, shows sustainability leadership in driving resource efficiency along the whole energy value chain.

TABLE OF CONTENTS

PG&E SEEKS LEADERSHIP UNDER CALIFORNIA’S BOLD ENERGY PLAN
PG&E Targets Recognition As A Sustainability Leader
Customer Energy Efficiency And Cleantech Uptake Dominate Initiatives
California’s Regulatory Environment Fosters Sustainability Leadership

TABLE OF FIGURES

Figure 1. Targets Focus On Facilities’ Energy, Water And Waste Efficiency by 2014
Figure 2. PG&E’s Sustainability Initiatives Focus On Operational Efficiency & Innovation
Figure 3. Three Factors Contribute To A Utility’s Value Chain Emissions
Figure 4. Operational Emissions Contracted While Carbon Intensity Of Energy Increased

COMPANIES MENTIONED

Aclara, BrightSource Energy, CDP, CarbonSystems, Chevrolet, Climate Action Reserve, Climate Earth, CPUC, E.ON, Ecologic Analytics, Enablon, Environmental Credit, EPA, General Electric, Hara, IHS, Iberdrola Renewables, Innovest, Landis+Gyr
MSCI, Renault, Risk Metrics, San Diego Gas & Electric, Silver Spring, Verisae, Wal-Mart