1. GreenMaven.com feature article, March 2008
Written and edited by Melissa Mansfield
Seeing the light: PG&E tackles global warming
In 1854, the streets of San Francisco were illuminated
for the first time by gas lamps. Over a hundred years
later, California and the world are struggling with
energy challenges in the face of global warming.
And the original lamplighter of 1854 - the San Francisco
Gas Company, which ultimately became the mega-
utilities corporation PG&E - is now seeing the light on
the need for sustainable power.
PG&E - and California - are already ahead of the game
in many ways. Over the past 30 years, while the
nation's energy per capita consumption jumped 50%,
California's remained flat.
How? In the 1990's, California decoupled profits from energy use and set the stage for energy
efficiency as a source of power and money.
"PG&E does not make money from selling more energy. It profits from how much energy it saves,"
explained Jennifer Zerwer, PG&E spokesperson. "PG&E treats energy efficiency as its top resource."
PG&E buys power from energy generators at fluctuating prices, while being forced to sell the power
to consumers at a fixed cost set by the California Energy Commission (CEC). The company must also
reach energy efficient targets set by the California Public Utilities Commission (CPUC).
In 2007, PG&E exceeded those targets, preventing 1,044,884 tons of carbon dioxide from being
released into the atmosphere, noted Kathy Romans, PG&E spokesperson.
PG&E now supports 85 energy efficiency programs that include efforts such as giving away CFL
(compact fluorescent light) bulbs. Collectively, these programs have saved 118 million megawatt
hours of electricity. That's enough electricity to power over 18 million homes.
The company has come a long way since their 1978 battle with the Environmental
Defense Fund over PG&E's rate increases. The company was ultimately fined $50
million by the California Public Utilities commission for failing to adequately implement
energy efficiency programs.
Now, PG&E is aggressively promoting energy efficiency and investing in R&D on clean
energy technology, particularly for transportation.
The Vehicle to Grid program uses reverse charge technology to promote low-emission
electric cars and energy efficiency. Customers would be able to plug in their hybrid
cars, drawing power from and feeding power into the grid.
"Essentially your car would become a mini power plant and PG&E would pay you for
supplying that power to the grid," Romans explained.
2. PG&E leaders are playing prominent roles in advocating for energy efficiency and new technologies.
Peter Darbee, the CEO of PG&E Corporation (the multi-billion dollar holding company of PG&E
Company), publicly supported AB32, a California measure passed in 2006 that caps statewide
greenhouse gas emissions and requires a 25% reduction in emissions by 2025. Under Darbee's
leadership, PG&E was the first utility to support the bill and was a founding member of the California
Climate Registry in 2004, in which companies signed up to voluntarily track their carbon dioxide
emissions.
In his previous role as PG&E's CFO, Darbee clearly recognized the profitability of energy efficiency.
After becoming CEO in January 2005 and shepherding the utility through bankruptcy proceedings,
Darbee realized that he needed to take a look at the bigger picture. After consulting with various
experts on global warming, Darbee was convinced of the urgency of the issue.
"If you had asked me five years ago, this wouldn't have occurred to me," Darbee acknowledged in an
October 2006 interview with the San Francisco Chronicle. "Somewhere in this process [of becoming
CEO], I developed a point of view...The Earth is warming. Mankind appears to be responsible. The
need to take action is now."
The facts about our contribution to global warming are indeed sobering. The average Californian
produces 12.2 metric tons of carbon dioxide per year. That's nearly 27,000 pounds. And electric
power generators in California are responsible for 12 percent of the total CO2 emissions in the state.
Fortunately, there are many solutions available - for both individuals and businesses. Something as
simple as replacing an incandescent light bulb with a CFL immediately reduces energy consumption
by 74 percent.
Keeping track of the thermostat is another great trick, recommended Stanley Young, spokesperson
for the California Air Resources Board. Keep it at 78 degrees in the summer, and you can reduce CO2
emissions by 30-40 percent. Set the thermostat for 68 degrees in the winter to keep those heating
bills down.
Need help figuring out how to best conserve energy? Check out PG&E's "Save Energy and Money"
page, which features an Energy Analyzer for your home, a list of available rebates and energy saving
tips.
For their part, PG&E is enthusiastically pursuing energy efficiency and clean energy programs.
They've awarded contracts to purchase 2000 megawatts of renewable energy in recent years.
“In 2007, PG&E purchased nearly a gigawatt of renewable energy," says Romans. "For perspective,
that means 18% of PGE’s total power mix is renewable energy under contract or delivered.”
PG&E has also entered into agreements to purchase various forms of renewable energy:
• 177 megawatts of solar thermal energy from Ausra.
• Two megawatts of wave energy from Finavera Renewables.
• An estimated 66 megawatts produced from biomethane - natural gas made from California
cow manure - enough to power 50,000 homes.
The company is also developing community-based education campaigns representing partnerships
with the city and the community. Check out Let's Green This City (a partnership with San Francisco)
and We Can Do This for more information on green efforts and resources for energy consumers and
corporations.
With a commitment to stemming global warming through energy efficiency, clean energy and public
education, PG&E is demonstrating that corporations can make a profit while sustaining the planet.