Pacific Gas & Electric Company
Grid Customer Services
245 Market Street
P.O. Box 770000
San Francisco, CA 94177



September 8, 1997


Mr. Rod Welch
The Welch Company
440 Davis Court #1602
San Francisco, CA 94111 2496
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Subject:   PG&E Communications for Survival

Rod,

This is a recent initiative by PG&E's CEO requesting ideas on improving "communications."
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Sincerely,



Bill







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Pacific Gas & Electric Company
77 Beale Street
San Francisco, CA 94177



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Date: Friday, September 5, 1997 at 12:12:56 pm PDT

From:   Gordon Smith (StarSend@Tsc@CTS)

To:     All PG&Eers:
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Subject:   Communications Vital Business Practice



The Management Committee held a special all-day meeting in San Ramon last Friday that focused on one topic - communications. This is such an important subject for all of us right now that I'm writing to convey to you a sense of what we discussed and what you can expect as a result of that meeting.
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Our concerns focused primarily on two things: (1) every employee needs to understand the huge challenges the company faces in dealing simultaneously with many complex and serious issues (which are listed below), and (2) every employee's help is needed to create a stronger trust in PG&E as a competent, responsible utility. As you may remember from my last e-mail, I think we need to speak up more often about the good work we're doing for our customers and communities in order to counteract the negative and often incorrect coverage we're getting in the media.
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To do this, every single employee needs to have correct, timely information about the company's programs, initiatives and practices, and each of us needs to communicate that information to our customers at every opportunity.
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Some of the messages I received in response to my last e-mail were critical of the way certain issues have been handled in the past, and one person in particular noted that employees need to be able to have confidence in the way we manage our business before they can express that confidence to their family and friends. To this I say, "Amen." I'm committed to making decisions and taking actions that will earn and keep your confidence as we move fully into a dynamic new marketplace.
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Here are the major issues facing the company in the next four to six months:
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  1. Direct access on 1/1/98

  2. Power plant divestiture

  3. The gas accord
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  4. Winter storm season
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  5. The dependability and reliability programs to improve and/or build new infrastructure

  6. Tree trimming issues

  7. Smart spending/saving programs
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  8. The general rate case
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If we are to successfully manage all these issues, we will need to have a common understanding of what they are, how they interact, and what the company's position is on each one. To help achieve this level of understanding, we will be developing a series of brief key messages on each of these topics (and others as they arise) to keep all employees informed and to coordinate our external communications.
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As a basis for understanding and communicating about these issues, we must all share a common vision of what we are doing as a business. At last Friday's meeting, the general managers of all three of the business units presented a brief overview of their plans for the next several years. These plans provide the overall direction the utility will follow and define what businesses we will be in for the foreseeable future. The General Managers and leadership teams of the business units will be providing more details on these business plans in the coming days and weeks. These plans will shared across all business units and corporate services departments so that everybody in the company is "on the same page."
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In this context, I want to state management's commitment to partnership with all our employees, both union and non-union:
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We promise to fight for our business at the legislature, before the regulatory agencies, and in the marketplace, so that we can continue to offer the services our customers value and succeed in the regulated utility business.
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We promise to engage your participation in as much decision making as we can, to listen to your ideas, and to communicate thoroughly and consistently with you about the direction of the company.
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In return, we need all PG&Eers to work flexibly, efficiently and safely to meet the challenges and constraints the marketplace is pressing on us, both in cost measures and work practices. Over the coming weeks you'll be hearing more about the details of the business plans and the company's position on the major issues we're facing.
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Your ideas and support are needed and welcomed as we find ways to provide good customer service while maintaining cost and resource efficiencies.
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I look forward to hearing back from you. Thanks, and work safely.




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Gordon Smith