PG&E 2007 Annual Report Download - page 7

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hydroelectric and nuclear facilities, we moved
forward on three new power plants that will
be vital to our long-term resource plan.
Very importantly, information technology
is becoming an increasingly central element
in our infrastructure.  e “smart” grid
of the future will rely heavily on computer
technology and digital communications.
Our multi-billion dollar investment in
SmartMeterTM devices is one initiative putting
us at the forefront of this evolution. In fact,
InformationWeek magazine named PG&E
the top energy company for IT innovation —
and one of the top 40 companies overall — in
its 2007 “InformationWeek 500” ranking.
Setting the Foundations
for a Sustainable Energy Future
 e immediacy and the enormity of the
challenge we face in global warming became
even more stark in 2007. Multiple new
studies showed that warming is changing
the planet more rapidly and severely than
previously forecast.
We believe the imminent and urgently
needed reckoning with greenhouse gas
emissions is likely to signi cantly and
permanently change the utility business.
A carbon-constrained future is no longer a
question of if, but rather when and how.
PG&E is urging policy makers to act now,
with a focus on creating national laws that
limit greenhouse gases and impose a market
price on carbon emissions.
Equally important, we are taking action
in the meantime to prepare our company and
our customers for this future.  is includes
continuing to aggressively drive advances in
energy e ciency and extending our renewable
energy commitments.
 is leadership has put PG&E in a strong
position. Last year, Innovest Strategic Value
Advisors, a top evaluator of investor risk and
value related to sustainability issues, issued
a report that ranked PG&E’s environmental
leadership (EcoValue index) in the top
25 percent of all utilities in its peer group.
 rough energy e ciency, we plan to
meet 50 percent or more of the growth in
energy demand in our service area over the
next 10 years. Importantly, this also now
represents a signi cant earnings opportu-
nity. An estimated $100 million to $200
million in total incentives are available to
PG&E over the next
four years if we meet
California’s energy
savings targets, which
are the nation’s highest.
Our team is excited
about these opportu-
nities.  ey make eco-
nomic sense for our
customers, and provide
utilities with strong
incentives to pursue
energy e ciency as an
alternative to building
new power plants.
Demand response is another priority.
Reducing peak energy demand is one of the
biggest keys to lowering emissions, reducing
costs, and improving overall e ciency.
Last year, we created a new SmartACTM
program that pays customers who choose
to allow PG&E to remotely adjust their air
conditioners at peak times. We aim to enroll
over 400,000 customers, allowing us to
cut demand by as much as the output of
several “peaking” power plants.
In the future, our SmartMeterTM infra-
structure will open up remarkable potential
to expand capabilities like this in even
more dramatic ways. And as the  rst utility
“On average, over
50 percent of the
energy PG&E
currently supplies
comes from sources
that emit no green-
house gases.”