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PG&E Restructures Operations, Reduces Staff

PG&E Restructures Operations, Reduces Staff

PG&ampE 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&ampE Gas Transmission (PG&ampE GT)-spread equally among the Texas and Portland, OR, operations.

And in an unrelated action, PG&ampE 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&ampE 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&ampE GT, Thomas King, indicated offices will remain in Portland, San Antonio and Houston as a means of using regional ties to build a national presence.

PG&ampE 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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