Senior decision-makers come together to connect around strategies and business trends affecting utilities.

Post

SDG&E Purchased More Than 40 Percent in Goods & Services from Small & Diverse Suppliers in 2020

Sara Prince's picture
Communications Manager SDG&E
  • Member since 2020
  • 21 items added with 18,043 views
  • Mar 2, 2021
  • 428 views

During a year when the economy was devastated by the pandemic, San Diego Gas & Electric sustained small and diverse suppliers by buying more than 40 percent in goods and services from them, according to the company’s newly released 2020 supplier diversity annual report.

“As one of the largest employers in the region, we recognize our supplier diversity program can be leveraged to help create a more inclusive economy and more equitable economic recovery,” said SDG&E CEO Caroline Winn. “Small and diverse businesses are job creation engines. When they flourish, our entire region flourishes.”

Overall, SDG&E injected more than $2 billion into the economy last year, the highest level of expenditures on goods and services in the company’s 140-year history. The company invested $872 million on small and diverse suppliers, representing 41.6% of the total expenditures – far exceeding the 21.5% goal set by the California Public Utilities Commission’s (CPUC). Last year also marks the eighth consecutive year that SDG&E’s supplier diversity spending surpassed 40%. (Videos of SDG&E’s diverse suppliers: A.M. Ortega Construction, Patriot General Engineering)

Year after year, SDG&E’s supplier diversity program has grown, paving the way for many subcontractors to become prime contractors and add jobs to the local economy.

To encourage large local employers to follow suit, SDG&E recently partnered with the San Diego Regional Economic Development Corp. (EDC) on a new study that analyzes the impact of increased local procurement on quality job creation, and includes recommendations for large employers to support small businesses by buying local. Along with the study, SDG&E also sponsored the EDC’s “Right Recovery Town Halls.

Here is a breakdown of SDG&E’s 2020 spending by diverse business categories:

  • Minority Business Enterprise: $455.4 million or 21.7%
  • Women Business Enterprise: $285.9 million or 13.6%
  • Service-Disabled Veteran Business Enterprise: $120.5 million or 5.7%
  • Lesbian, Gay, Bisexual, Transgender Business Enterprise: $10.4 million or 0.5%

 

Diverse suppliers support many of SDG&E’s key functions including electric engineering and construction, gas operations, clean transportation, sustainability/environmental services and wildfire mitigation/vegetation management. Early in the pandemic, SDG&E even partnered with a Vista-based whiskey distillery to refocus production on hand sanitizers for its field crews.

Discussions
Bob Meinetz's picture
Bob Meinetz on Mar 2, 2021

"Diverse suppliers support many of SDG&E’s key functions including electric engineering and construction, gas operations, clean transportation, sustainability/environmental services and wildfire mitigation/vegetation management."

Sarah, correct me if I'm wrong: SDG&E buys the gas it uses to generate electricity from an unregulated subsidiary of Sempra, Inc., SDG&E's parent company.

What would lead electricity customers to believe Sempra isn't exploiting them by marking up the price of the gas it "buys from itself"? After all, they're being billed for SDG&E's costs in their electricity rates, and since Sempra's subsidiary isn't regulated, there'd be no way to know.

Worse, it would create an incentive for SDG&E to burn as much gas as possible to generate electricity!

Matt Chester's picture
Matt Chester on Mar 2, 2021

As one of the largest employers in the region, we recognize our supplier diversity program can be leveraged to help create a more inclusive economy and more equitable economic recovery,

Love to hear this. Procurement is such an underutilized tool in this respect-- whether governments, corporations, or otherwise-- but the real, tangible impact it can have is undeniable. 

Get Published - Build a Following

The Energy Central Power Industry Network is based on one core idea - power industry professionals helping each other and advancing the industry by sharing and learning from each other.

If you have an experience or insight to share or have learned something from a conference or seminar, your peers and colleagues on Energy Central want to hear about it. It's also easy to share a link to an article you've liked or an industry resource that you think would be helpful.

                 Learn more about posting on Energy Central »