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Energy. Where will it come from? How much will it cost? Will new resources be available for our use in the years ahead? These are questions of vital concern to the public utilities industry, since the answers will determine how we all live and work in the future. Pacific Gas and Electric Company, a client of our San Francisco office, is attempting to find solutions today to the potential energy problems of tomorrow. In an age in which it has become necessary to develop as many alternative energy-producing technologies as possible, this is the only company in the country that generates electricity from geothermal steam as well as from water, oil, natural gas and nuclear sources. PG&E also is engaged in numerous research ventures to explore the potential of other power-producing methods. By most standards of measurement, Pacific Gas and Electric is the largest investor-owned gas and electric public utility in the United States, providing gas and electricity to more than five million customers in forty-eight counties of northern and central California. Operating revenues for 1975 were approximately $2.2 billion, roughly 29 percent higher than the previous year. The gain was largely due to higher rates granted to offset the rising prices of natural gas and fuel oil. There was an increase of nearly 70,000 customers last year as well. San Francisco partner Benton Coit heads the engagement. When he retires next year, partner Gary West will take charge of the three managers and fifteen staff accountants on the audit team. According to Gary, the structure of the utilities industry results in interesting accounting situations. He cites as an example the recent use of PG&E subsidiaries like Natural Gas Corporation of California, Alberta and Southern Gas Co., Ltd. and Pacific Gas Transmission Company to support gas-exploration efforts on the North Slope of Alaska, in Canada and in a number of northern and central Rocky Mountain states. In 1970 the company launched a seven-year project to integrate completely its electronic data-processing system. With EO partner Gordon Murray providing consulting assistance, four H&S people worked closely with a ten-member team from PG&E to create an inclusive definition of the system intended to replace the earlier, more-segmented version. Today PG&E's computer system is capable of a variety of functions. The largest single application involves customer service, but the computer also is used for property taxes, payroll and inventories. It also provides, as one example, analysis of the optimum point of efficiency for using hydroelectric power by rapidly evaluating factors such as storage-water evaporation and peak power demand in summer. The history of Pacific Gas and Electric is tied in with the frontier past of northern California. PG&E is a direct descendant of the San Francisco Gas Company, which in 1852 pioneered gas service in the western United States by manufacturing gas from coal, and the California Electric Light Company of San Francisco. The latter in 1879 began the country's first central-station commercial electric service. By late 1905, only a few months before the disastrous earthquake, PG&E had evolved through the merger of the two San Francisco-based utilities and many other systems. Later mergers in the 1930s—with Great Western Power Company and the San Joaquin Light and Power Corporation—expanded PG&E's service area to its present boundaries. PG&E today is the result of the merger of more than five hundred companies into a single, efficient operation. The company now employs more than 25,000 people and has seventy-seven generating plants, 94,000 miles of electric transmission and distribution lines and 31,000 miles of gas pipelines. Its total system generating capability at annual peak is fourteen million kilowatts from a combination of its own plants and contracts with other producers. The quality of its management has been responsible in great measure for the company's success. Shermer L. Sibley, chairman and chief executive officer, holds a degree in electrical engineering and has been with the utility since 1936. Richard H. Peterson, vice chairman of the board and a graduate of the University of Cali- Copyrighted -- License from Black Star
Object Description
Title |
Pacific Gas and Electric Company: A Report on a west coast client |
Author |
Anonymous |
Contributor |
Moore, Charles |
Subject |
Pacific Gas and Electric Company |
Personal Name |
West, Gary R. Skinner, Stanley T. Peter, Frank A. Doudiet, James T. Coit, Benton C. Murray,Gordon L. |
Portrait |
West, Gary R. Skinner, Stanley T. Peter, Frank A. Doudiet, James T. |
Office/Department |
Haskins & Sells. San Francisco Office Haskins & Sells. Executive Office |
Citation |
H&S Reports, Vol. 13, (1976 summer), p. 20-24 |
Date-Issued | 1976 |
Source | Originally published by: Haskins & Sells |
Rights | Copyright and permission to republish held by: Deloitte; Photographs by Charles Moore, Black Star |
Type | Text |
Format | PDF page image with corrected OCR scanned at 400 dpi |
Collection | Deloitte Digital Collection |
Digital Publisher | University of Mississippi Library. Accounting Collection |
Date-Digitally Created | 2010 |
Language | eng |
Identifier | HSReports_1976_Summer-p20-24w |