Pg&e management is acknowledging and "rewarding" its dedicated and loyal employees by extreme layoffs. They believe the job can be done with fewer employees. But is that really the problem? or could it be poor management? Hmmm.....yet management positions are being filled abundantly while the "worker bee" positions - who know and do the work - are not (and have not been)being filled to accomodate the rapid new business demands. The "do more with less" hypothesis may work for some companies, but for a utility this frame of mind does not offer customer satisfaction, nor employee enlightenment. hello! while the employees who have had to deal with encumbering and redundant processes and software applications, all the while performing the work for 2 - 3 employees, have continually put forth a valiant effort to deliver, they are rewarded with apathy and disregard and now displacement.
as new business rapidly increases, pg&e management's transformation strategy - headed and steered by accenture, a cut-throat outsourcing consultant, directs the company to do far more with far less. It works for other companies?
they have benchmarked with other utilities who do not have an equitable customer base, employee base, nor come remotely close to the vast and extremely varied terrain pg&e covers. Accenture may have been successful with thames utility in england...mainly by outsourcing...but the thames water company can in no way be compared to pg&e. much smaller customer base and area.
so where does that leave the employees? out of a job. How will customers feel having to deal with someone, say in kentucky or india, who has no concept, no idea of what the customer is talking about?
it may at some point-on the surface...appear as a cost savings for rate payers and stockholders. But when the 'final' results are in...and all the errors and rework is performed...the so called cost savings will, in fact, be nonexistent and in fact, actually cost more.
the transformation strategy which includes centralization, consistency and elimination of redundant rework looks great on paper and the concept sounds great. However, consistency can not occur with outsourcing and less in-house employees.cookie-cutter job estimation is not feasible with new business jobs that encompass san francisco city to the rugged terrain of shasta county.
pg&e management will force transformation through. But the end results for the customer will become painfully apparent in short order. Meanwhile, managament will be awarded fat bonuses regardless of the results and will move on to other endeavors.
customers beware. Stockholders beware. Projections on paper and manipulated numbers will not accurately reflect the 'success' of pg&e's transformation stratagies. when the debacle is finally uncovered, it will be too late for the customers/rate payers. Until another major rework and 'special projects are initiated to recover the monies or collect the monies due.
centralization and consistency is not necessarily a bad idea. but pg&e management, at the highly paid direction of accenture, is blundering forward without definitive and conclusive proof their strategies are workable.
todate, their elaborate plans for consolidation and new application tools and processes are not working. there are severe problems with smart metering and sever underestimation in the numbers of gas meters that will have to be replaced to accommodate smart metering. Pg&e management forecasts the approximate cost to customer to be at most $.97 per month. Just wait...you'll see the cost to rate payers for smart metering increase far above the projected cost.
pg&e management has an agenda...and their "go forth at all costs" attitude will place far more of a financial burden on rate payers than disclosed...and you can be sure customer satisfaction will not measure up to their benchmark predictions.
Check out this site (also printed below)
On July 12, 2006, the Board of Directors of Pacific Gas and Electric Company (Utility) approved an arrangement for Thomas B. King, President and Chief Executive Officer of the Utility, that provides (1) if he remains employed by the Utility, PG&E Corporation, or any of their affiliates until age 55, and if he chooses to retire before age 65, he would be entitled to receive an unreduced pension benefit, and (2) an award of restricted phantom stock units with an aggregate value of $1 million, as discussed below.
Under the Utility's defined benefit pension plan, employees who are at least 55 years old with a minimum of five years of consecutive service may retire before age 65 with a reduced pension benefit. The applicable reduction factors depend on the age of the retiring employee and years of service. Under the arrangement, Mr. King's pension benefit will not be reduced by the reduction factor that would otherwise be applicable if he retires before age 65. Assuming that Mr. King's salary will increase four percent annually and that he retires at age 55, the elimination of the early retirement reduction factors in calculating Mr. King's pension benefit is estimated to provide $1.5 million in net present value to Mr. King upon retirement. Any enhanced pension benefit that may become payable to Mr. King would be paid from the PG&E Corporation Supplemental Executive Retirement Plan.
The Nominating, Compensation and Governance Committee of the PG&E Corporation Board of Directors awarded Mr. King 25,233.41 restricted phantom stock units with an aggregate value of $1 million based on the closing stock price of PG&E Corporation common stock on July 12, 2006 (the date of grant) of $39.63, as reported on the New York Stock Exchange. The restricted phantom stock units will vest five years after the date of grant, provided that Mr. King is still employed by the Utility, PG&E Corporation, or any of their affiliates. Vesting of the restricted phantom stock units and Mr. King's right to receive the unreduced pension benefit are subject to acceleration under certain circumstances associated with Mr. King's death, disability, or termination of employment. The vesting of the restricted phantom stock units and Mr. King's right to the unreduced pension benefit also would accelerate upon a Change in Control of PG&E Corporation (as defined in the PG&E Corporation 2006 Long-Term Incentive Plan (LTIP)) if these modifications to Mr. King's compensation arrangements are not assumed by the Acquiror (as defined in the LTIP).
Looking at this, there is NOTHING that would prevent him from sandbagging the company's efforts and bailing out to line his own pockets. Something tells me the ship's gonna hit the sand. It's interesting in that it was done a few months AFTER the shareholders meeting - maybe they're figuring folks would forget about it by next April.
So much for the BOD walking the talk. Time to start shouting!
As a PG&E employee with over 28 years and 4th gen PG&Er I have seen many of the changes that have come and gone. My concern with the direction we are going is that we aren't getting any better we are just telling everyone that we are getting better. It seems to me that if we are going to become the number 1 utility in the country we have to do it by our actions not just telling the media and any one that will listen that we are going to be number 1. Delight the customers, This is only for the big developers that have been doing there own subdivisions. The existing customers and owner builders will not see a benefit but will be treated as after thoughts. Energize the employees, this means make them scared for there jobs so they will do non-traditional work that should be done by another classification or another department so they won't be fired.
My favorite is the fact that Accenture is the new name for Andersen Consulting, which broke away from Arthur Andersen in 2000, after a longstanding feud. Does Arthur Anderson sound familiar they should they allowed Enron to cook there books and destroyed documents as Enron collapsed. Here is my source.
They are also an offshore company.
Head Office: Cedar House, 41 Cedar Avenue Hamilton HM12, Bermuda (for information on US corporations incorporated overseas click here) Phone: 441-296-8262 Fax: 441-296-4245
The text from the source.
Accenture is the new name for Andersen Consulting, which broke away from Arthur Andersen in 2000, after a longstanding feud. The change to Accenture was the fastest, most expensive re-branding effort in history as everything was changed to fit the new logo in a matter of days. It is Arthur Andersen that is in so much legal trouble for allowing Enron to cook their books and destroying Enron's documents as Enron collapsed. While Accenture states that because it is no longer tied to Andersen it is not implicated in the Andersen/Enron scandal, the Wall Street Journal reported that Accenture might have some legal exposure to the Enron scandal, especially if Accenture had anything to do with consulting for Enron's 'special-purpose entities' which were among the main players in Enron's collapse.
.. You're retired Bonneville! Your full of yourself.. BS. Anyway, I'll let this go. Back to the Stock.
I think the stock is been pumped up like a Christmas Turkey. It dependes on how the re-org goes. I don't think is going too well. No new Tools!.. Set backs on staffing at the centers. Their having to force employees to go to RMC's. Not a good sign of success. I see major work arounds with inexperienced personnel. Maybe PG can pull a rabbit out with something .. but I don't see anything new in terms of some major software for clerical - which makes me think negative. It looks like a mess.
To keystojunkg ! Don't worry about mirerrd2 ! He's still mad because he knows that I am the guy that toke his lunch money every day at school in the Bay Area. So, let's just shine him on . Maddogmcnasty
Maddogmcnasty.. That's true.. Mirerrd2 is a chump. He came off like he was some kind of maverick. Turns out he's an old frustrated Bonneville employee who obviously couldn't manage his portfolio when he was younger & now wants to make up for lost time with PG&E.
PG&E does seem to have a knack of getting into a new Fkup every few years. I guess someones got to pay.
You don't want to deal with it? Three suggestions:
1. If you're an employee, then quit.
2. If you're a stockholder, then sell.
3. If you're a resident, then move.
If you don't do the above, then I'll have to assume you just offer opinions to friends and relatives without facts.
If you want to DO something about it, then write letters (WITH PROOF) to the CPUC and to FERC. IF you've got proof, I'll be more than glad to see it - and I don't mean "proof" that the clerical and ESC workers are going to the RMCs or the IBEW employees are being cut way back. I mean proof of your claims that money is being spent inappropriately, etc...
Just don't sit around whining on a message board where the whiners all feed off each other - and probably do so on company time.
35 years in the industry and neither an employee or consultant...
Minerrd2.. Go back to Accenture or whatever rock you came from under. Take your stock with you. Your money is dirty. I've worked for this company for over 20 years and I've got an idea of whats going on. I think frizzy's on the mark. Yah sure I own PG&E Stock. I also care about the Company I've worked for. That's one of the many diffrences between us. It's not just another pork belly purchase.
Whoever you are, you have certainly done your homework. As an employee of PG&E I could not have said it better. I am worried about my job here along w/ other co-workers but agree the direction we are headed should become a nightmare
Perhaps this latest act of mother nature is just another divine intervention, much like the "storm of the century" in 1995, when thousands of lay-offs were averted. If I see one more PG&E spokesman trying to spin these heat related outages as a no fault, unpreventable coincidence on the local news, I will personally arrange for an interview with the White House.