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.



Rod Welch