PG&E Restructures Operations, Reduces Staff
PG&E Corp. is consolidating overall management of its Pacific
Northwest and Texas natural gas operations to gain some
efficiencies and prepare for expanding into unspecified markets
throughout North America. A total of about 100 positions, less than
10% of the 1,000-person work force, will be eliminated from PG&E
Gas Transmission (PG&E GT)-spread equally among the Texas and
Portland, OR, operations.
And in an unrelated action, PG&E Energy Trading let 11 gas
traders go in a "retooling, refocusing" of its trading operations.
A spokeswoman said the company is "centralizing all risk management
to optimize our assets. We found that some of the individuals.don't
serve the company's needs going forward." She said PG&E Energy
Trading intends to fill some vacant positions with traders with
more experience executing "longer-term, more structured trades."
The reorganization of the gas transportation operations is
intended to help integrate what were basically autonomous natural
gas transmission, storage, gathering and liquids operations. The
various divisions had operated separately since the acquisition of
the Texas assets from Valero and Teco Pipeline in 1996-97.
Among specific transportation personnel changes were the
concentration of most senior executives in a still-small but
growing Houston office, placement of the senior executive for
operations in San Antonio and concentration of transmission and
storage service operations in Portland. The president of PG&E
GT, Thomas King, indicated offices will remain in Portland, San
Antonio and Houston as a means of using regional ties to build a
PG&E GT operates 9,000 miles of interstate transmission
pipeline, including a system out of western Canada (Alberta)
serving the U.S. Pacific Northwest and California and one in Texas,
in addition to nine gas processing plants and a
100,000-barrel-per-day natural gas liquids (NGL) operation and
500-mile NGL pipeline in Texas.
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