Set forth below in accordance with your letter dated March 25, 1999, is PG Energy's annual report.

Transcription

1 >j O'visjc-o Soi^wn (Audi Co^oa'fy April 4, 2006 Mr. John Alford Secretary Pennsylvania Public Utility Commission Room B20, North Office Building Commonwealth and North Streets Harrisburg, PA RECEIVED APR PA PUBLIC UTILITY COMMISSION SECRETARY'S BUREAU Dear Mr. Alford: Set forth below in accordance with your letter dated March 25, 1999, is PG Energy's annual report. If. after reviewing the enclosed responses, additional clarification and/or information is required, please do not hesitate to contact me at (570) Sincerely, (l * Enclosure John M. Beberus Director of Human Resources DOCUMENT FOLDER One PEI Center Wilkes-Barre. PA

2 fo-obw ^7 REPORT ON DIVERSITY TO THE PENNSYLVANIA PUBLIC UTILITY COMMISSION APR - t 2006 APR PA PUBLIC UTILITY COMMISSION SECRETARY'S BUREAU PG ENERGY APRIL 1,2006

3 REPORT ON DIVERSITY TO THE PENNSYLVANIA PUBLIC UTILITY COMMISSION HUMAN RESOURCES SECT PG ENERGY APR ~ 4 zm PA PUBLIC UTILITY COMMISSION SECRETARY'S BUREAU

4 HUMAN RESOURCES SECTION TABLE OF CONTENTS PART 1 WORKFORCE COMPOSITION...PAGES 3-6 PART 2 NARRATIVE ON AFFIRMATIVE ACTION EFFORTS...PAGES a RECRUITING...PAGE 7 2b ADVERTISING... PAGE 8 2c TRAINING... PAGE 9 2d PROMOTION... PAGES e RETENTION... PAGE 12 PART 3 WORKFORCE/SERVICE TERRITORY COMPARISON... PAGES a DESCRIPTION OF SERVICE TERRITORY... PAGE 13 3b DEFINITION OF RELEVANT LABOR FORCE... PAGES c COMPARISON OF INTERNAL WORKFORCE/ RELEVANT LABOR FORCE... PAGES PAGE 2

5 PART 1 PG ENERGY S WORKFORCE COMPOSITON Pages 4-6 reflect the prior three years workforce composition data for PG Energy. It should also be noted that the data in this report includes the affiliate company, PEI POWER CORPORATION which is located in Archbald, PA. PEI POWER CORPORATION employs eleven persons. PAGE 3

6 The below information sets forth PG Energy s actual EEO-1 statistics for the plan ending 12/31/03. Job Categories MALE FEMALE A B C D E F G H I J K Overall White Black Hispanic Asian Amer- White Black Hispanic Asian Amer- Totals [Not of [Not of Or Indian [Not of INot of Or Indian [Sum of Hispanic Hispanic Pacific Or Hispanic Hispanic Pacific Or Col. B thru Origin] Origin] Islander Alaskan Orisinl Oriein] Islander Alaskan K] Native Native OFFICIALS AND 1 MANAGERS PROFESSIONALS TECHNICIANS SALES WORKERS OFFICE AND CLERICAL CRAFT WORKERS (SKILLED) OPERATIVES (SEMI-SKILLED) LABORERS (UNSKILLED) SERVICE WORKERS TOTAL PAGE 4

7 The below information sets forth PG Energy s actual EEO-1 statistics for the plan ending 12/31/04. MALE FEMALE A B C D E F G H I ; K Overall White Black Hispanic Asian Amer- White Black Hispanic Asian Amer- Totals [Not of [Not of Or Indian [Not of [Not of Or Indian (Sum of Hispanic Hispanic Pacific Or Hispanic Hispanic Pacific Or Job Categories Col. B thru Origin] Origin) Islander Alaskan Orieinl Orieinl Islander Alaskan K1 Native Native OFFICIALS AND MANAGERS PROFESSIONALS TECHNICIANS SALES WORKERS OFFICE AND 5 CLERICAL CRAFT WORKERS 6 (SKILLED) OPERATIVES 7 (SEMI-SKILLED) LABORERS 8 (UNSKILLED) SERVICE WORKERS TOTAL PAGES

8 The below information sets forth PG Energy s actual EEO-1 statistics for the plan ending 12/31/05. MALE FEMALE A B C D E F G H I J K. Overall White Black Hispanic Asian Amer- White Black Hispanic Asian Amer* Totals [Not of [Not of Or Indian [Not of [Not of Or Indian [Sum of Hispanic Hispanic Pacific Or Hispanic Hispanic Pacific Or Col. B thru Origin] Orieinl Islander Alaskan Origin] Orieinl Islander Alaskan Job Categories K1 Native Native OFFICIALS AND MANAGERS PROFESSIONALS TECHNICIANS SALES WORKERS OFFICE AND 5 CLERICAL CRAFT WORKERS 6 (SKILLED) OPERATIVES 7 (SEMI-SKILLED) LABORERS (UNSKILLED) SERVICE WORKERS TOTAL PAGE 6

9 PART 2 AFFIRMATIVE ACTION EFFORTS 2a RECRUITING It is the policy of PG Energy to fill any vacant position within the Company with the candidate most qualified for that position. Although specialized qualifications required may necessitate an expansion of the search for candidates to outside sources, every practicable effort is made to fill such vacancies with qualified persons from within the regular full-time employees regardless of race, color, religion, sex, age or national origin. In order to attract qualified female and minority applicants the Human Resources Department contacts verbally and/or in writing several female and minority organizations. These include the NAACP, Department of Military Affairs, Bureau of Employment Securities (including veteran representatives), Human Development Agencies, etc. These job services are instructed that we are seeking qualified females and/or minorities for job vacancies. Other recruitment methods have included: employee referrals and attendance at local Job Pairs sponsored by local colleges or the Chamber of Commerce in surrounding areas. PG Energy s recruiting program encourages the recruitment of minority and female applicants for current employment opportunities. PAGE?

10 AFFIRMATIVE ACTION EFFORTS 2b ADVERTISING If necessary, expanded searches for candidates are conducted via the most appropriate method. Employment advertisements which contain job title, job specifications and the Company s Equal Opportunity Employer Statement are placed in local newspapers relevant to the work location of the position vacancy. Job placement with any advertising organization reflects the Company s EEO Statement. Advertisements were placed in local newspapers for the following position vacancies during 2005: Service Technician: Williamsport Gas Balancing Analyst: Wilkes-Barre HR Generalist: Wilkes-Barre Automated Mapping Specialist: Bloomsburg Call Center Representative: Wilkes-Barre Laborer: Honesdale PAGES

11 AFFIRMATIVE ACTION EFFORTS 2c TRAINING It is the policy of PG Energy to make training and development opportunities available to all employees, Training is both activities of a formalized nature, e.g. courses, seminars, etc, conducted either within or outside the Company and structured on-the-job learning experiences to which employees are deliberately exposed. Tuition Reimbursement is one program through which the Company encourages its regular full-time employees to better qualify themselves for their present work with PG Energy. During 2005, 6 females and 5 males took courses through the reimbursement program. For 2005, Tuition Reimbursement was based on grade received for completing each course with a maximum of 100% reimbursement for tuition and texts when an A grade is achieved. 85% for a B grade and 75% for a C grade. A D grade and below received no reimbursement. Supervisory personnel have attended Supervisory Training which includes information relating to Affirmative Action, Diversity and Equal Employment Opportunities at Penn State (a local college). During 2005, the Company reinforced its programs on performance appraisal, interviewing skills, and forms completion training programs to employees in-house. The Company also presented several Spanish speaking workshops, Luzerne County Community College Customer Service training to outside employees, and Achieve Global Customer Service programs. PAGE 9

12 iwm I?] AFFIkMATIVE action efforts 2d PROMOTION It is the policy of PG Energy to take all practical steps toward securing qualified candidates for vacant positions from within the total current employee population, and to offer current employee training, and developmental opportunities which not only better qualifies them to meet the requirements of their present position but which also prepares them to assume positions of greater responsibility in the future. This is accomplished through the job posting process for many positions. To insure compliance, every supervisor involved in hiring, promotion, training or termination decisions is instructed to make those decisions in accordance with equal employment opportunity principles. Only those qualifications which are directly related to job requirements will be considered. Both employees and applicants will be judged on their skills and abilities alone. PG Energy will ensure equal employment and promotional opportunities to all individuals without regard to race, color, religion, sex, age, veteran status, disability or national origin. An individual s sex will not be used as a factor for consideration in matters affecting initial employment and subsequent treatment as an employee, unless required by law or as a bona fide condition of employment. During 2005, 4 employees were promoted with PG Energy of which 2 were females and 2 were male. PAGE 10

13 AFFIRMATIVE ACTION EFFORTS 2d PROMOTION (continued) An employee is promoted when he/she responds to a job posting within the Company, whether it is a bargaining unit, non-exempt, or exempt job posting, and is awarded the position, provided the award is a higher ranked position in the overall structure of positions. The employee receives the rate of pay applicable to the position or a percentage increase if they are awarded a non-bargaining unit position. A promotion may also occur if the employee receives a title change in either the same grade or the same general classification of positions in a bargaining unit family of positions. PAGE 11

14 AFFIRMATIVE ACTION EFFORTS 2e RETENTION PG Energy retains its employees by paying competitive salaries as they relate to local and regional market conditions; additionally, the fringe benefits package is very competitive. The majority of employees are recruited and promoted through the job posting process, thus providing employees opportunities to financially better themselves. The turnover rate for the last several years has been low, except for early retirements. These events provided opportunities to employees for upward mobility and during a reorganization of certain Company functions, employees were provided opportunities to move into key positions. The Company provides training and education opportunities for employees as a means of retention. Training and education allows employees to reach their productivity and creativity potentials, thus becoming important resources to the Company. PAGE 12

15 PART 3 WORKFORCE/SERVICE TERRITORY COMPARISON 3a DESCRIPTION OF SERVICE TERRITORY PG ENERGY is a local natural gas distribution company operating in 13 counties in northeastern Pennsylvania. Natural gas is served to approximately 158,000 customers in over 116 municipalities, including the cities of Scranton, Honesdale, Wilkes-Barre and Williamsport. PEI POWER CORPORATION, provides consumers with electricity generated from natural and methane gases. PAGE 13

16 Scranton-Wilkes-Barre-Hazleton LABOR FORCE CHARACTERISTICS EMPLOYMENT AND UNEMPLOYMENT BY SEX AND MINORITY STATUS SEX AND MINORITY STATUS LABOR FORCE EMPLOYED UNEMPLOYED PERCENT DISTRIBUTION Labor Force Employed Unemployed BOTH SEXES 4 Total 259, ,525 12, MALE White 256, ,800 12, Black 1,325 1, Other Races 1,825 1, Hispanic 1,675 1, Minority Group 4,800 4, Total 138, ,800 6, White 136, ,475 5, Black Other Races 1, Hispanic Minority Group 2,600 2, FEMALE < Total 120, ,725 6, White 119, ,325 6, Black Other Races Hispanic Minority Group 2,200 1, 'Hispanic persons are o Mexican, Puerto Rican, Cuban, Central or South American, or some other Spanish Origin. ** Sum of black, other races, and Hispanic. Some duplication is possible since Hispanic may include non-white races. ***As noted in Labor Market Information Books, items may not add to totals because of rounding. PAGE 14

17 Williamsport and Allentown-Bethlehem, PA LABOR FORCE CHARACTERISTICS EMPLOYMENT AND UNEMPLOYMENT BY SEX AND MINORITY STATUS SEX AND MINORITY STATUS LABOR FORCE EMPLOYED UNEMPLOYED PERCENT DISTRIBUTION Labor Force Employed Unemployed BOTH SEXES 4 Total 372, ,050 14, m MALE White 355, ,450 12, Black 6,725 5, Other Races 9,600 8, Hispanic 16, , Minority Group 32,800 30,025 2, Total 199, ,175 7, White 191, ,350 6, Black 3,300 2, Other Races 6,175 4, Hispanic 9,425 8, Minority Group 18,125 16,675 1, FEMALE i Total 172, ,875 6, White 164, ,100 5, Black 3,425 3, Other Races , Hispanic 7,075 6, Minority Group 14,675 13,350 1, * Hispanic persons are of Mexican, Puerto Rican, Cuban, Central or South American, or some other Spanish Origin. ** Sum of black, other races, and Hispanic. Some duplication is possible since Hispanic may include non-white races. ***As noted in Labor Market Information Books, items may not add to totals because of rounding. PAGE 15

18 JOB GROUP NUMBER OF EMPLOYEES MINORITY # % PG ENERGY UTILIZATION ANALYSIS As of January 1, 2006 Employ/merit Availability UNDERUTILIZATION FEMALE # % MINORITY % FEMALE % MINORITY Yes/No FEMALE Yes/No Executive Management Yes Yes Operating Managers / Directors Yes No Line Supervision Yes Yes Engineers Yes Yes Other Professionals Yes No Technical / Professionals Yes Yes Sales Representatives Yes Yes Secretarial & Administrative Support Yes No Customer Contact Representative No No All Other Clerical No Yes Crew Leader No Yes Service Person No Yes All Other Craftsmen No Yes Assistant Fitter No Yes Mechanics & Repairers Yes Yes Meter Reader Yes Yes Laborers Yes Yes Patrolperson / Janitor Yes Yes PAGE 16

19 WORKFORCE/SERVICE TERRITORY COMPARISON 3c EXPLANATION OF WORKFORCE/ RELEVANT LABOR FORCE COMPARISON The comparison on page 16 shows the internal workforce by EEO-1 group as well as the availability of minorities and females in the relevant labor force by EEO-1 group. Where the percentage of minorities and females in the internal workforce surpasses the percentage of minorities and females in the external labor force, there is adequate utilization of the surrounding labor force for position vacancies within an EEO- 1 group. However, where the labor force availability percentage surpasses the percentage of females and minorities in the internal workforce, there is concern of underutilization and affirmative action efforts are taken to reduce such underutilization. **Please note: the relevant labor force percentages were determined through extensive calculations found in the availability analysis section of the Company s Affirmative Action Plan. The method used to calculate the percentages was the Availability Computation Method. PAGE 17

20 REPORT ON DIVERSITY TO THE PENNSYLVANIA PUBLIC UTILITY COMMISSION PROCUREMENT SECTION PG ENERGY

21 PROCUREMENT SECTION TABLE OF CONTENTS PART 1 NARRATIVE ON MAV/DBE PROCUREMENT EFFORTS... PAGES 3-5 la INTERNAL EFFORTS...PAGE 3 lb EXTERNAL EFFORTS...PAGE 4 1c SUBCONTRACTING EFFORTS... PAGE 5 PART 2 UTILITY PROCUREMENT DIVERSITY REPORT...PAGES 6-7 PAGE 2

22 PART la PG ENERGY INTERNAL EFFORTS Purchasing works closely with all PG Energy departments to ensure that every effort is made to identify and use disadvantaged businesses for the purchase of materials and services. The support and direction of upper management is enlisted in this effort to ensure success. PAGE 3

23 PART lb PG ENERGY EXTERNAL EFFORTS The purchasing manager works with the newly formed Energy Association of Pennsylvania purchasing and material managers to identify and share vendor information on minority, physically challenged and women-owned businesses. It is anticipated that this new substantially larger organization of gas and electric utilities will lead to a more effective procurement process for all participants. We continue to access the Pennsylvania State listing of disadvantaged businesses: minority, physically challenged and women-owned. Qualified vendors will be solicited for quotations for materials and services. PG Energy will also search out minority business counsels in Pennsylvania and adjacent states in an effort to identify additional vendors. We will further our efforts to identify and develop disadvantaged vendors within our local communities with the help of our local college s small business incubator programs and the local Chambers of Commerce. In addition, when we cannot identify vendors in the Commonwealth, we will enlist our parent company, Southern Union Company, and its divisions to develop minority, physically challenged and women owned business. PAGE 4

24 PART 1c PG ENERGY SUBCONTRACTING EFFORTS We have worked more closely with our vendors to encourage and assist them in the identification and use of disadvantaged businesses. PAGE 5

25 PART 2 PG ENERGY UTILITY PROCUREMENT DIVERSITY REPORT AS OF DECEMBER 31, 2004 TOTAL COMPANY MINORITY S % OF TOTAL PROCUREMENT S (MBE) WOMEN S % OF TOTAL (WBE) TOTAL $ (MAV/DBE) % OF TOTAL DIRECT TOTAL $128,349, $ 15, % $3,150, % $3,166, % * The above data represents 2004 figures data was unavailable. PAGE 6

26 PART 2 PG ENERGY PROCUREMENT DATA FOR PROTECTED CLASSES CATEGORIZED BY MINORITY, FEMALE AND PHYSICALLY CHALLENGED A Vendor Data Form was mailed to each of PG Energy s vendors. This form contains necessary business classification information in order to categorize vendors by minority, female and physically challenged. The process of posting the vendor information to our computer system has been completed. PAGE 7