Study bares utility firm’s impact on California economy, jobs
SAN FRANCISCO, California — A new report released Tuesday, Feb. 25 shows that the utility company not only provides gas and electricity to more than 15 million Californians, but also helps drive California’s economy.
New research by the Sacramento-based Center for Strategic Economic Research (CSER) shows that PG&E contributed $22.2 billion, or two percent, to all economic activity and supported nearly 71,600 jobs, or one percent of all jobs, in its service area, which stretches from the Oregon border to Bakersfield, in 2012.
Aside from the utility’s direct economic activities, the report also accounts for the multiplier or “ripple” effect of those activities throughout state, regional and local economies.
“For every dollar of revenue created by PG&E, another 50 cents of economic activity is created in the economy,” said Ryan Sharp, the director of the Center for Strategic Economic Research.
“And for every job supported by PG&E, more than two jobs are supported in the economy.”
PG&E economic contributions in 2012 also included $5.8 billion in labor income and $3.4 billion of state and local taxes.
The company’s impact exceeded that of other industries such as software publishing, wineries, scientific research and development services.
The impact is distributed across all of PG&E’s service area as the economic output ranges between $4.1 billion and $6.6 billion in each of the company’s four regions (Bay Area, Central Coast, Central Valley and Northern).
“We have a responsibility to provide our customers with safe, reliable and affordable gas and electric services, and also to do everything possible to maintain an economically healthy business that helps power California’s economy,” said Tony Earley, chairman, CEO andp of PG&E Corporation.
Within the study, PG&E’s general operations refers to all activities associated with the utility’s energy supply, electric and natural gas transmission and distribution, customer care, corporate and administrative services. The report also includes the market value of the goods and services PG&E provided to its customers.
Separately, the study also quantifies the economic impact of the company’s customer energy efficiency programs, accounting for program expenditures, project investments and the significant reduction in customers’ bills from reduced energy use.
The study found that PG&E’s shareholder-funded community investments nearly doubled in economic output in the service area as a result of the positive impact on recipient charitable organizations. For every dollar that PG&E invested in education, environmental stewardship and economic and community vitality programs, another 90 cents of economic output was created.
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