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Peter Darbee's getting rid
of the historical PG&E

Talk about changing a corporate culture!

We mentioned to Peter Darbee at a press luncheon that in the old days Pacific Gas & Electric was the leading member of EEI as measured by arrogance.
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Click here for more information        That's not news to him.
       A public relations executive for Southern California Edison had once told us that PG&E fosters arrogance -- even among its public relations people.
       That's not what Darbee has in mind for PG&E. He had the press luncheon in Washington to help get started the major change in culture.
       Other important clues:
       Darbee put a customer's picture on the cover of the annual report for an important reason. It's the first such document in 100 years so to do.
       "At the start of our second century, our new focus and direction" reflect the new customer-centric orientation.
       Regulated companies have learned to adjust to the regulator "as the customer," Darbee wrote.
       "As a model for success going forward, this is every bit as broken as its wounds," he added.
       Darbee sees arrogance as a road to ruin.
       True, Enron may have surpassed PG&E for arrogance but both firms have learned a lot of humility from their bankruptcies.
       Darbee got the firm as it came out of bankruptcy then launched the radical change in culture. He has his work cut out for him. He was read the results of the latest JD Power survey where PG&E was at the bottom.
       He knew about that and the low employee morale.
       Darbee's global warming plans are big. He intends to become a leader among those who attack this problem.
       "The debate over global warming is over," he said.
       "What do we have to do," he asked. This train is coming down the track."
       The concept of opposing or waiting until all can agree on what to do is a recipe for disaster, he predicted.
       As a leader, Darbee wants to be in on making the decisions with other leaders and policymakers.
       That view puts him in favor of mandatory cap-and-trade rules. Fortunately PG&E is super low in emissions now at only 0.048 pounds/kwh compared with 0.435 for contiguous firms.
       Looked at another way, Darbee reports the cost of added efficiency at 3.5 - 4¢/ kwh for efficiency and sees it as the best way to go.
       His outlook for markets in California?
       From a background at AT&T he favors competition especially for large customers but wants to see rules developed first.
       "PG&E wants choice for large customers," he said.
       At retail, after the wholesale markets are worked out, he added.
       Originally published in Restructuring Today on March 31, 2006

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CONFERENCE LINKS

NEM 2006 National Energy Restructuring Conference
 When: 04/25/06 - 04/26/06
Where: Marriott at Metro Center
www.energymarketers.com/agenda/2006/April/April2006.htm

CHP: Reducing Energy Costs Through Recycled Energy
When: 05/11/06 , 8:00 AM - 5:00 PM Eastern
Where: University of Southern Maine
www.northeastchp.org/nechpi/calendar/events/nechpi052006.htm

UTC TELECOM 2006
 When: May 21 – 24, 2006
Where: Tampa Convention Center, FL
 www.UTCTELECOM2006.utc.org

Survival Skills for a New Era
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Where: Your home, work or cell phone
 www.restructuringtoday.com/conferences/survival.html

NET-ATHOME™ -- The world’s most international connected home event
When:  September 26 & 27, 2006
Where: Hilton Hotel -- Cannes, France
 www.net-athome.com/

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