THE WELCH COMPANY

440 Davis Court #1602

San Francisco, CA  94111-2496

415 781 5700



[Submitted via email]

November 7, 1997                                        04 00061 97110701



Mr. Lee Calloway
Vice President
Public Relations
Pacific Gas and Electric Company
77 Beale Street
San Francisco, CA  94177

Subject:  Communication Metrics

Ref:   a. Telecon Susi/Rod Nov 7, 1997
          b. Telecon Diane/Rod Nov 6, 1997
          c. Welch letter to Gordon Smith Oct 27, 1997
          d. Buck letter to Gordon Smith Oct 12, 1997

Dear Lee


Here is the original email, ref d, sent to

Gordon Smith
that is cited in the
letter dated Oct 27, ref c, which has been given to you for review, per my
discussion with Diane.  Susi suggested this morning that I submit the email so
that you have a complete record to facilitate consideration of making inquiry
about Communication Metrics.







Russ Jackson
called me this morning.  He indicated PG&E has made changes to
communications and is satisfied, since there have been no complaints.




This is good progress relative to

Gordon's request
on Sep 5 for ideas to
improve communication.  I asked Russ if it would be appropriate for you to
review Communication Metrics under precepts of continual improvement, based on
the U.S. Army Corps of Engineers' report that Communication Metrics supports a
new concept of "business intelligence."  Russ indicated approval.  Intelligence
is vital in the modern era of information overload, and PG&E has not yet
reviewed this methodology.




Accordingly, please advise who should review the recent government report on

Communication Metrics
showing ROI of 10:1 and reduction of cost of operations
in the 6% range, in order to assess the prospects of improving PG&E's
performance and earnings.




Thanks for your consideration.




Sincerely,




THE WELCH COMPANY






Rod Welch