1. 1 W7 Identifying Opportunities by Gathering and Analyzing Corporate Spend Data Pacific Gas and Electric Company Joan Kerr Director, Supplier Diversity and Sustainability November 5, 2014

2. PG&E Supplier Diversity2 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

3. PG&E Supplier Diversity3 Portfolio Spend Area Highlights PortfolioSpend Area HighlightsPortfolioSpend Area Highlights Generation Portfolio Materials and Services to generate: Hydro Power Fossil Power Renewable Power Corporate Services Business Consulting Financial Services Forms and Stationary HR / Staffing Services Legal Marketing Office Supplies Staff Augmentation Travel Electric Ops Electrical Construction Transmission & Distribution Transformers Vegetation Management Civil Construction MRO Materials Engineering Services Diablo Canyon Power Plant (DCPP) DCPP Nuclear Procurement DCPP Warehousing and Logistics IT / Telecom Computer Hardware and Software Telecom Equipment IT Consulting IT Security Gas Ops Hydro-Testing Pipeline Construction Civil Construction Engineering Services Data Integrity MRO Materials Gas Line Inspection Supplier Quality Product Inspections Field Material Problem Reporting Management of Vendor Quality Programs Customer Care Consultant Services for Energy Efficiency Programs: Customer Operations Integrated Demand-Side Management Smart Meter Shared Services Transportation Services Environmental (Permits, Licensing, Remediation) Facilities Management Corporate Security PG&E Spend Categories

4. PG&E Supplier Diversity4 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

5. PG&E Supplier Diversity5 Identifying Opportunities LOB Champions and Goal-Setting Process

6. PG&E Supplier Diversity6 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 Spend Over $2.3B Prime Supplier Program Other Direct

7. PG&E Supplier Diversity7 …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

8. PG&E Supplier Diversity8 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

9. PG&E Supplier Diversity9 PG&E Supplier Diversity: 5-Year Performance Trend $268.4M 54.4% *Not Adjusted

10. PG&E Supplier Diversity10 MBE Performance Trend Year-Over-Year (2013 v. 2012) $1.5B or 27.4%Total MBE spend $1.5B or 27.4% 17.8% or $227.6MIncreased MBE year- over-year 17.8% or $227.6M Five-Year Positive Trend (2009 to 2013) 173.5% or $955.1MTotal MBE spend nearly tripled, 173.5% or $955.1M

11. PG&E Supplier Diversity11 More information available To learn more about PG&E’s Supplier Diversity Program, please visit us at www.pge.com/supplierdiversity/ www.pge.com/supplierdiversity/ …where you will find: 2013 Annual Report Diverse Business Events Calendar “Powered by Diversity” Newsletters “Diverse Suppliers Go Green” resources

12. 12 Thank You!