History Pacific Gas and Electric Company

1 history

1.1 history

1.1.1 san francisco gas
1.1.2 san francisco gas , electric


1.2 pacific gas , electric company

1.2.1 1906 san francisco earthquake


1.3 sacramento electric, gas , railway company
1.4 further consolidation , expansion

1.4.1 natural gas


1.5 nuclear plants , gas pipelines
1.6 postwar era
1.7 bankruptcy

history
early history
san francisco gas

in 1850s, manufactured gas introduced in united states means of lighting. gasworks built in larger eastern american cities, there no gas industry in west, however. in san francisco, street lighting available on merchant street, in form of oil lamps.

three brothers—peter, james, , michael donahue—became interested in gas manufacturing while running foundry later became union iron works, largest shipbuilding operation on west coast. joseph g. eastland, engineer , clerk @ foundry, joined them in gathering information on gas making find. in july 1852, james applied , received common council of city of san francisco franchise erect gasworks, lay pipes in streets , install street lamps light city brilliant gas . council specified gas should supplied households @ such rates make interest use in preference other material . donahue brothers , eastland incorporated san francisco gas company on august 31, 1852, $150,000 of authorized capital. company became first gas utility in west. official seal bore inscription fiat lux —let there light—the same slogan later adopted university of california. there 11 original stockholders, , 3 donahue brothers subscribed 610 of 1,500 shares.

the original location gas works bounded first, fremont, howard , natoma streets south of market, on shore of san francisco bay. work on plant started in november, 1852, , ready operation few months later. on night of february 11, 1854, streets of san francisco first time lighted gas. celebrate event, company held gala banquet @ oriental hotel. gas lighting gained public favor. in first year of operation, there 237 customers. number more doubled next year, 563. end of 1855, company had laid more 6 ½ miles of pipe , 154 street lamps in operation.

the growing popularity of gas light led establishment of competing gas companies, including aubin patent gas company , citizens gas company. these smaller companies acquired san francisco gas company. however, 1 rival provided serious competition. city gas company founded in april 1870 bank of california compete gas monopoly held donahue brothers operation. city gas began operation in 1872 , initiated price war san francisco gas company. in 1873, companies negotiated consolidation compromise , bank of california gained part ownership of lucrative gas monopoly in west . on april 1, 1873, san francisco gas light company formed, representing merger of san francisco gas company, city gas company, , metropolitan gas company.

san francisco gas , electric

gas utilities, including san francisco gas light, faced new competition introduction of electric lighting california. according 2012 pg&e publication , 1952 commissioned history, in 1879, san francisco first city in u.s. have central generating station electric customers. stay competitive, san francisco gas light company introduced argand lamp same year. lamp increased light capacity of gas street lamps, proved expensive improvement , not adopted. meanwhile, demand electric light in stores , factories of downtown san francisco continued grow. first electric street light erected in 1888 in front of city hall, , electrical grid supporting gradually extended. second generating station constructed in 1888 california electric light company increase production capacity.

new competition emerged in 1880s in form of water gas, improved illuminant patented thaddeus lowe. united gas improvement company, water gas manufacturer organized after purchasing lowe gas patents, acquired lease , interest in san francisco s central gas light company on november 1, 1883. united acquired pacific gas improvement company in 1884. under management of president albert miller, pacific gas improvement developed formidable competitor san francisco gas light. horace a. miller, secretary , c. o. g. miller (christian otto gerberding miller), president, owned , controlled not pacific gas improvement company pacific gas lighting company (pacific lighting company). c.o.g. miller buried in pyramid mausoleum @ mountain view cemetery, oakland ca. horace miller built enormous mansion in piedmont, ca @ 445 mountain avenue in 1913, designed arthur brown, famous san francisco architect.

in 1888, san francisco gas light built own water gas plant @ potrero gas works. manufacturing of water gas proved successful due increased availability of inexpensive petroleum. company decided construct modern gas works both updated water gas manufacturing technology , modern coal-gas plant hedge against shortages in supply of oil. in 1891, north beach gas works completed under direction of san francisco gas light president , engineer joseph b. crockett. facility largest gas holder in u.s. west of chicago.

in 1896, edison light , power company merged san francisco gas light company form new san francisco gas , electric company.consolidation of gas , electric companies solved problems both utilities eliminating competition , producing economic savings through joint operation. other companies began operation active competitors merged san francisco gas , electric company included equitable gas light company, independent electric light , power company, , independent gas , power company. in 1903, company purchased main competitor gas lighting, pacific gas improvement company.

pacific gas , electric company

pacific gas , electric company plant in sacramento, 1912

according pg&e s 2012 history timeline on webpage, san francisco gas , electric company , california gas , electric corporation merged form pacific gas , electric company (pg&e) on october 10, 1905. consolidation provided california gas , electric corporation access large san francisco market , base further financing. san francisco gas , electric company, in turn, able reinforce electric system, until had been powered entirely steam-operated generating plants, , not compete lower cost hydroelectric power. after merger formally completed, engineers , management both organizations formulated plans coordinating , unifying 2 gas , electric systems. however, 2 firms maintained separate corporate identities until 1911.

pg&e s natural gas transmission system serving millions of california homes

pg&e began delivering natural gas san francisco , northern california in 1930 through longest pipeline in world, connecting texas gas fields northern california compressor stations included cooling towers every 300 miles (480 km), @ topock, arizona, on state line, , near town of hinkley, california. introduction of natural gas, company began retiring polluting gas manufacturing facilities, though kept plants on standby. today there network of 8 compressor stations linked 40,000 miles of distribution pipelines , on 6,000 miles of transportation pipelines serving 4.2 million customers bakersfield oregon border.

in 1950s , 1960s, @ both topock , hinkley compressor stations, hexavalent chromium in form of additive used in rust-prevention in cooling towers prepared gas transportation through pg&e’s pipeline northern , central california. these cooling waters disposed of adjacent compressor stations.

in 1952 charles m. coleman—who worked pg&e s publicity department—completed book entitled p. g. , e. of california: centennial story of pacific gas , electric company, 1852–1952.

the 1906 san francisco earthquake

pg&e affected 1906 san francisco earthquake. company s assorted central offices damaged quake , destroyed subsequent fire. san francisco gas , electric company subsidiary in particular suffered significant infrastructure loss, distribution systems—miles of gas mains , electric wires—were dissevered. 2 gas , 2 electric plants, located far city, survived destruction. these functioning facilities—including new 4,000,000-foot crude oil gas works @ potrero point—played critical roles in san francisco s rebuilding efforts. many of pg&e s utility competitors ceased operation following great earthquake. however, company s substantial capital allowed survive, rebuild, , expand.

sacramento electric, gas , railway company

in 1906, pg&e purchased sacramento electric, gas , railway company , took control of railway operations in , around sacramento. sacramento city street railway began operating under pacific gas & electric name in 1915, , track , services subsequently expanded. 1931 sacramento street railway division operated 75 streetcars on 47 miles (76 km) of track. pg&e s streetcars powered company s hydroelectric plant in folsom. in 1943, pg&e sold rail service pacific city lines, later acquired national city lines. several streetcar lines converted bus service, , track abandoned entirely in 1947.

during same period, pacific city lines , successor, national city lines, funding general motors, firestone tire, standard oil of california (through subsidiary, federal engineering), phillips petroleum, , mack trucks buying streetcar lines , rapidly converting of them bus service. consortium convicted in 1949 of federal charges involving conspiracy monopolize interstate commerce in sale of buses , supplies national city lines , subsidiaries. actions became known great american streetcar scandal or general motors streetcar conspiracy.

further consolidation , expansion

pg&e general office building in san francisco

within few years of incorporation, pg&e made significant inroads northern california s hydroelectric industry through purchase of existing water storage , conveyance facilities. these included many reservoirs, dams, ditches , flumes built mining interests in sierras no longer commercially viable. 1914, pg&e largest integrated utility system on pacific coast. company handled 26 percent of electric , gas business in california. operations spanned 37,000 square miles across 30 counties.

the company expanded in 1920s through strategic consolidation. important acquisitions during period included california telephone , light company, western states gas , electric company , sierra , san francisco power company, provided hydropower san francisco s streetcars. these 3 companies added valuable properties , power , water sources. end of 1927, pg&e had 1 million customers , provided electricity 300 northern californian communities.

in 1930, pg&e purchased majority stock holdings in 2 major californian utility systems—great western power , san joaquin light , power—from north american company, new york investment firm. in return, north american received shares of pg&e s common stock worth $114 million. pg&e gained control of 2 smaller utilities, midland counties public service , fresno water company, later sold. acquisition of these utilities did not result in immediate merger of property , personnel. great western power company , san joaquin company remained separate corporate entities several more years. through final major consolidation, pg&e served of northern , central california through 1 integrated system.

natural gas

the gas industry market structure dramatically altered discovery of massive natural gas fields throughout american southwest beginning in 1918. fuel cleaner manufactured gas , less expensive produce. while natural gas sources abundant in southern california, no economical sources available in northern california. in 1929, pg&e constructed 300-mile pipeline kettleman oil field bring natural gas san francisco. city became first major urban area switch manufactured gas natural gas. transition required adjustment of burners , airflow valves on 1.75 million appliances. in 1936, pg&e expanded distribution additional 45-mile pipeline milpitas. pg&e gradually retired gas manufacturing facilities, although plants kept on standby.

defense activities boosted natural gas sales in california during world war ii, cut state s natural reserves. in 1947, pg&e entered contract southern california gas company , southern counties gas company purchase natural gas through new 1,000-mile pipeline running texas , new mexico los angeles. agreement reached el paso natural gas company of texas gas delivery california-arizona border. in 1951, pg&e completed 502-mile main connected el paso network @ state line.

during period of expansion pg&e involved in legal proceedings securities , exchange commission regarding company s status subsidiary of north american company. outlined public utility holding company act of 1935, utility subsidiary defined utility company more 10% of stock held public utility holding company. though 17% of pg&e stock held north american company @ time, pg&e filed sec exempted subsidiary status on grounds 17% ownership did not give north american company control , because north american company occupied 2 board member spots. north american company backed pg&e s request stating involved in business operations in limited capacity. request remained unresolved until 1945 when north american company sold off stocks brought ownership below 10%. sec ruled pg&e not subsidiary of north american company. in 1948, north american company sold remaining stock in pg&e.

nuclear plants , gas pipelines

in 1957, company brought online vallecitos nuclear center, first privately owned , operated nuclear reactor in united states, in pleasanton, california. reactor produced 5,000 kilowatts of power, enough power town of 12,000.

in addition nuclear power, pg&e continued develop natural gas supplies well. in 1959, company began working obtain approval import of large quantity of natural gas alberta, canada california, via pipeline constructed westcoast transmission co. , alberta , southern gas company on canadian side, , pacific gas transmission company, subsidiary of pg&e, on u.s. side. construction of pipeline lasted 14 months. testing began in 1961, , completed 1,400-mile pipeline dedicated in 1962.

pg&e began construction on nuclear facility, diablo canyon power plant, in 1968. slated come online in 1979, plant s opening delayed several years due environmental protests , concerns on safety of plant’s construction.

testing of plant began in 1984, , energy production brought full power in 1985.

during construction of diablo canyon plant, pg&e continued efforts bring natural gas supplies north service area in california. in 1972, company began exploring possibilities 3,000-mile pipeline alaska, travel through mackenzie river valley , on join constructed pipeline originating in alberta.

in 1977 mackenzie valley pipeline project received approval u.s. federal power commission , support carter administration. pipeline still required approval canada, however. plans pipeline placed on hold in 1977 canadian judge. justice thomas r. berger of british columbia shelved project @ least 10 years, citing concerns first nations groups, land pipeline have traversed, potential environmental impacts.

in 1984 great-grandson of pg&e s founder george h. roe—david roe published book entitled dynamos , virgins during time when there growing antinuclear-power movement. david roe, environmentalist , environmental defense fund s west coast general counsel, mounted assault on longstanding assumption steady growth in coal- , nuclear-generating capacity solution nation s energy needs. based arguments on economic analysis aimed @ showing shift energy conservation , alternative energy sources alone slake thirst electricity.

postwar era

as of december 1992, pg&e operated 173 electric generating units , 85 generating stations, 18,450 miles (29,690 km) of transmission lines , 101,400 miles (163,200 km) of distribution system.

in 1997, pg&e reorganized holding company, pg&e corporation. consisted of 2 subsidiaries—pg&e, regulated utility, , non-regulated energy business.

in later 1990s, under electricity market deregulation utility sold off of natural gas power plants. utility retained of hydroelectric plants, diablo canyon power plant , few natural gas plants, large natural gas plants sold made large portion of generating capacity. had effect of requiring utility buy power energy generators @ fluctuating prices, while being forced sell power consumers @ fixed cost. however, market electricity dominated enron corporation, which, other corporations, artificially pushed prices electricity ever higher. led california electricity crisis began in 2000 on path 15, transmission corridor pg&e built.

with critical power shortage, rolling blackouts began on january 17, 2001.

bankruptcy

in 1998, change in regulation of california s public utilities, including pg&e, began. california public utility commission (cpuc) set rates pg&e charge customers , required them provide power customers wanted @ rates set cpuc.

in summer of 2001 drought in northwest states , in california reduced amount of hydroelectric power available. pg&e buy cheap hydroelectric power under long term contracts bonneville dam, etc. drought , delays in approval of new power plants , market manipulation decreased available electric power generation capacity generated in state or bought under long term contracts out of state. hot weather brought on higher usage, rolling blackouts. etc.

with little excess generating capacity of own pg&e forced buy electricity out of state suppliers without long term contracts. because pg&e had buy additional electricity meet demand suppliers took advantage of requirement , manipulated market creating artificial shortages , charged high electrical rates. cpuc refused adjust allowable electric rates. unable change rates , sell electricity consumers cost them on open market pg&e started hemorrhaging cash.

pg&e company (the utility, not holding company) entered bankruptcy under chapter 11 on april 6, 2001. state of california tried bail out utility , provide power pg&e s 5.1 million customers under same rules required state buy electricity @ market rate high cost meet demand , sell @ lower fixed price, , result, state lost significant amounts of money.

the crisis cost pg&e , state somewhere between $40 , $45 billion. there evidence crisis played important part in eventual recall of california governor gray davis.

pg&e company, utility, emerged bankruptcy in april 2004, after paying $10.2 billion hundreds of creditors. part of reorganization, pg&e s 5.1 million electricity customers have pay above-market prices several years cancel debt.