San Diego Gas & Electric (SDG&E), casting an extensive economic shadow across San Diego County, reported a direct impact of $2.59 billion in 2023 according to a recent release. The utility juggernaut contracted with over 2,000 businesses, distributing wealth and opportunity throughout the area. Its commendable spending with diverse suppliers—defined as companies owned by minorities, women, LGBT individuals, service-disabled veterans, and persons with disabilities—tallied $450.6 million in county expenditures and $950.7 million across California, according to information from the Times of San Diego.
In a nod to inclusive business practices, nearly 600 companies, or a third of all suppliers to SDG&E in the last year, touted diverse ownership. Pushing the envelope for the 19th year in a row, SDG&E has surpassed the supplier diversity goals set by the California Public Utilities Commission (CPUC). "We are laser-focused on maximizing every dollar for our customers, while also growing economic opportunities for small and diverse businesses in our region," Caroline Winn, SDG&E CEO, underscored in a statement obtained by SDGE News.
The utility giant, dealing with everything from underground cabling to IT support, continues to build relations with suppliers across a broad industry span. Rancho Tree Service, a minority-owned enterprise, recently made headlines as a primary contractor providing crucial vegetation management services under the SDG&E umbrella. Owner Jose De La Cruz boasted to SDGE News, "Our crews help keep local communities safe from wildfires by trimming and clearing trees, bushes and other plants to prevent them from coming into contact with our electric infrastructure, such as power lines."
Yet, beneath the veneer of SDG&E's community-driven initiatives, profits told another tale. The company’s parent corporation, Sempra Energy, reported nearly $3 billion in earnings last year, with SDG&E itself claiming a record $936 million in profit, revelations the Times of San Diego brought to light. These figures drop against the backdrop of a campaign, led by Power San Diego, to municipalize the utility in hopes of curbing what they label as "egregious" rates. The group's proposed takeover plan, a stark contrast to SDG&E's own $9.3 billion estimate, promises a 20% rate cut for a mere $2.5 billion investment.
Mark Cafferty, San Diego Regional Economic Development Corporation president and CEO, praised large companies like SDG&E, underscoring their pivotal role in the local economy with procurement practices potentially creating thousands of jobs. According to fellow SDGE News, "If major companies make small shifts in procurement to direct more spending locally, it can help add tens of millions of dollars to the local economy."
