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W7 Identifying Opportunities by Gathering and Analyzing Corporate Spend Data

Pacific Gas and Electric Company

Joan KerrDirector, Supplier Diversity and Sustainability

November 5, 2014

PG&E Supplier Diversity 2

• 107 years old

• One of the largest natural gas and electric utilities in the U.S.

• 21,000 employees

• 15 million customers

• 160,000 circuit miles of electric transmission lines.

• 49,000 miles of natural gas transmission pipelines.

• 5,000 suppliers

“PG&E” refers to Pacific Gas and Electric Company a subsidiary of PG&E Corporation. ©2011 Pacific Gas and Electric Company. All rights reserved.

About PG&E

PG&E Supplier Diversity 3

Portfolio Spend Area Highlights Portfolio Spend Area Highlights Portfolio Spend Area Highlights

Generation Portfolio

Materials and Services to generate:•Hydro Power •Fossil Power •Renewable Power

Corporate Services

Business ConsultingFinancial ServicesForms and StationaryHR / Staffing ServicesLegalMarketingOffice SuppliesStaff AugmentationTravel

Electric Ops

Electrical ConstructionTransmission & Distribution TransformersVegetation ManagementCivil ConstructionMRO MaterialsEngineering Services

Diablo Canyon

Power Plant (DCPP)

DCPP Nuclear ProcurementDCPP Warehousing and Logistics

IT / Telecom

Computer Hardware and SoftwareTelecom EquipmentIT ConsultingIT Security

Gas Ops

Hydro-TestingPipeline ConstructionCivil ConstructionEngineering ServicesData IntegrityMRO MaterialsGas Line Inspection

Supplier Quality

Product InspectionsField Material Problem ReportingManagement of Vendor Quality Programs

Customer Care

Consultant Services for Energy Efficiency Programs:•Customer Operations•Integrated Demand-Side Management•Smart Meter

Shared Services

Transportation ServicesEnvironmental (Permits, Licensing, Remediation)Facilities Management Corporate Security

PG&E Spend Categories

PG&E Supplier Diversity 4

Analysis Tools

Corporate Spend by Line of Business (LOB)

• Funnel Report• Status of key projects, including savings detail and DBEs

awarded

• Expiring Contracts List• List of potential upcoming bids

• Category Plans• Marketplace analysis and existing DBEs

• S1/S2 Long Range LOB Plans• Multi-year plans and priorities by line of business

PG&E Supplier Diversity 5

Identifying OpportunitiesLOB Champions and Goal-Setting Process

PG&E Supplier Diversity 6

Analyzing impact of PG&E’s Prime Supplier Program (PSP)$675.5 million in Tier 2 spending with DBEs, a

10.6% YOY increase.

Additional $300M+ attributed to DBE business solution partnerships and VARs

Over 40% accomplished through our prime suppliers

2013 PG&E Supplier Diversity SpendOver $2.3B

Prime Supplier Program Other Direct

PG&E Supplier Diversity 7

…drives focus on key PSP management priorities

Monitor

• Data Trends• Spend Profile

Changes• EOY Forecasting• Scorecards• Champion Meeting

Educate• PSP Guide• Training Webinars• Pre-Bid Meetings

Evaluate

• Diversity Integration Validation & Review Council

PG&E Supplier Diversity 8

Reporting Organizational Spend

• Overall Company Performance, reviewed by President

• Vendor Spend Report

• Tier Two Subcontracting Report

• Line of Business Champion Report

• Director Level Report

Maintain Visibility

Share Progress

Reinforce Accountability

PG&E Supplier Diversity 9

PG&E Supplier Diversity:5-Year Performance Trend

$268.4M

54.4%*Not Adjusted

PG&E Supplier Diversity 10

MBE Performance Trend

Year-Over-Year

(2013 v. 2012)• Total MBE spend $1.5B

or 27.4%

• Increased MBE year-over-year 17.8% or $227.6M

Five-Year Positive Trend

(2009 to 2013)• Total MBE spend nearly

tripled, 173.5% or $955.1M

$550 $681

$1,016

$1,278

$1,505

15.2%

19.6%

23.1%24.2%

27.4%

2009 2010 2011 2012 2013

MBE Performance ($M)2009 - 2013

MBE % MBE

PG&E Supplier Diversity 11

More information available

To learn more about PG&E’s Supplier

Diversity Program, please visit us at

www.pge.com/supplierdiversity/

…where you will find:• 2013 Annual Report• Diverse Business Events Calendar• “Powered by Diversity” Newsletters• “Diverse Suppliers Go Green”

resources

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Thank You!