Southern California Gas Company (SCGC) is a Sempra Energy Company subsidiary; they distribute and service natural gas to residential and commercial customers. Their vision statement is “We are a dynamic, world-class energy company that places customers first. Committed, competent people working together, we are driven by a fierce resolve to succeed in a constantly changing, competitive environment”.
SCGC is the largest distributor and servicer of natural gas in the United States. They supply natural gas to 19.5 million customers, operate and maintain around 97,000 miles of pipeline, and have a service territory that encompasses 23,000 square miles. In most incidences they are the only provider of natural gas, and because of that most customers don’t have a choice on who supplies their natural gas needs.
The organizational challenge will be for Southern California Gas Company (SCGC) to overcome a budget shortage in their Field Operations department facing the company for 2013. Southern California Gas Company (SCGC) is facing a budget shortage of 54 million dollars in their operation and maintenance (O&M) for their Field Operations department for the year, they were not granted this money by the California Public Utility Commission (CPUC). The CPUC is the governing agency that approves customer rates that utility companies can charge in California, these are rates that cover the utility company’s expenses and profits. SCGC was granted money for other aspects of their operation, for items that benefit the customer or that are safety related. These cuts affecting the O&M for the Field Operation department covers such items as employees, their salaries, and the daily general expenses to run the department. The CPUC felt that this reduction was necessary to protect the best interest of the consumer so they would not to be overly charged on their rates.
This is not only a fiscal challenge, but a...